Problem:
Samli Company has the following information:
Estimated Actual
Manufacturing Overhead 600,000 602,000
Direct Labor cost 460,000 456,000
Direct Labor hours 40,000 40,200
Machine Hours 80,000 79,000
Samli applies overhead based on direct labor hours. Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is over or underapplied and the amount.