Homework answers / question archive / During the year, Paul Company used a predetermined overhead rate of $3

During the year, Paul Company used a predetermined overhead rate of $3

Accounting

Share With

During the year, Paul Company used a predetermined overhead rate of $3.50 per direct labour hour, based on an estimate of 22,000 direct labour hours to be worked during the year. Actual overhead cost and activity during the year were:

Actual manufacturing overhead cost incurred

$90,000

Actual direct labour hours worked

25,000

What was the under- or overapplied overhead for the year?