Question - A shoe company's overhead is applied to the shoes based on direct labor hours. last year, total overhead costs were expected to be $72,000. Actual overhead costs totaled $80,000 for 8,000 actual hours. At the end of the year, overhead was underapplied by $5,000.
A. Calculate the determined overhead rate.
B. How much overhead should be applied to a job that was completed in three direct labor hour?