The following information is available from the Han SoloCompany, which applies manufacturing overhead on the basis ofdirect labor hours.
Estimated manufacturing overhead for theyear $1,638,000
Estimated direct labor hours for the year 390,000 hours
Actual manufacturing overhead incurred $1,862,000
Actual direct labor hoursworked 442,000 hours
Part a
Compute the predetermined overhead rate.
part b
Compute the amount of applied manufacturing overhead.
Part c
Compute the amount of under-applied or over-applied manufacturing overhead. Clearly indicate whether the overheadis under-applied or over-applied.