Bubba's Crawfish Processing Company uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at $3,175,000 and direct labor hours are budgeted at 155,000 hours. Actual overhead was $4,200,000 and actual overhead hours worked were 185,000.
(a) Calculate the predetermined overhead rat(E)
(b) Calculate the overhead applie(D)
(c) Determine the amount of overhead that is over/underapplie