Compute the overhead applied

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Bubba's Crawfish Processing Corporation uses a traditional overhead allocation based on direct labor hours. For the existing year overhead is estimated at $2,250,000 and direct labor hours are budgeted at 415,000 hours. Actual overhead was $2,200,000 and real overhead hours worked were 422,000.

(a) Compute the predetermined overhead rate.

(b) Compute the overhead applied.

(c) Evaluate the amount of overhead that is over/underapplied.

Reference no: EM1376171

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