Determine the amount of over or underapplied overhead

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Reference no: EM131267784

The predetermined overhead allocation rate for Fortune, Inc. is based on estimated direct labor costs of $400,000 and estimated factory overhead of $500,000. Actual costs incurred were:

Direct materials $250,000

Direct labor 405,000

Indirect materials 55,000

Indirect labor 125,000

Sales commissions 50,000

Factory depreciation 170,000

Property taxes on factory 25,000

Factory utilities 35,000

Advertising 62,500

Factory equipment rental 100,000

Determine the amount of over - or underapplied overhead. Make sure you show how you calculated this number.

Reference no: EM131267784

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