Problem
Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $337,770 for the year, and machine usage is estimated at 125,100 hours.
For the year, $357,866 of overhead costs are incurred and 130,900 hours are used.
Compute the manufacturing overhead rate for the year.
What is the amount of under- or overapplied overhead at December 31?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.