Assignment
1. Malcolm Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs.
On September 1, the estimates for the month were:
Manufacturing overhead...........................................................................$17,000
Direct labor hours...................................................................................13,600
During September, the actual results were:
Manufacturing overhead...........................................................................$18,500
Direct labor hours...................................................................................12,000
The cost records for September will show:
Underapplied overhead of $3,500. What formula is used to solve this problem?