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Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 30,000 actual direct labor-hours and incurred $348,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 29,000 direct labor-hours during the year and incur $319,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:
Over applied by $18,000
Over applied by $11,000
Under applied by $18,000
Under applied by $11,000
Compute the predetermined overhead rate and compute the overhead applied.
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