What was the under applied or over applied overhead for the


Orson Corp. is a job lot manufacturer. The budget for the month of May calls for 8,000 direct labor hours to be worked. Budgeted overhead is $88,000 with a predetermined rate of $11 per hour. Overhead is applied based on actual direct hours worked. Actual direct hours were 8,300 and actual overhead spending was $88,500. What was the under applied or over applied overhead for the month of May? Over applied is shown as a negative number.

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Accounting Basics: What was the under applied or over applied overhead for the
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