Compute the amount of under-applied or over-applied

Reference no: EM13257436

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.

Reference no: EM13257436

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