Compute the actual and applied overhead

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Problem - A company has the following information relating to its production costs:

Machine hours 25,000

Direct labor cost $550,000

Indirect labor 45,000

Plant maintenance 259,300

Plant supervision 90,000

Plant depreciation 150,000

Plant utilities 48,000

Indirect materials 5,000

Required - Compute the actual and applied overhead using the company's predetermined overhead rate of $23.92 per machine hour. Was the overhead overapplied or underapplied, and by how much?

Reference no: EM132797401

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