What was the under or over applied overhead per year

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During the year, Paul company used a predetermined overhead rate of $3.50 per direct labour hour,based on estimate of 22,000 direct labour hours to be worked during the year. Actual over head cost and activity during the year were :

Actual manufacturing overhead cost incurred $90,000

Actual direct labour hours worked 25,000

Question 1: What was the under or over applied overhead per year

Reference no: EM132517140

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