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Question: A) Baltimore Company uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $240,000 and direct labor hours of 8,200. During the month of February 2019, actual direct labor hours of 8,900 were incurred. Use this information to determine the amount of factory overhead that was applied in February. (round answer to the nearest whole dollar):
B) During March 2019, Annapolis Corporation recorded $40,800 of costs related to factory overhead. Alpha's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $43,700 would be incurred, and 4,000 direct labor hours would be worked. During March, 5,750 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied. (Round answers to the nearest whole dollar. Enter as a positive number if under applied. Enter as a negative number if over applied.)
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