Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $300,000. Estimated direct labor cost was $400,000 for 20,000 hours.

Actual costs for the most recent month are summarized here:

Item Description ............... Total Cost

Direct labor (1,500 hours) ............ $33,000

Indirect costs

Indirect labor ................ 4,500

Indirect materials ............... 2,500

Factory rent ................ 4,200

Factory supervision ............. 4,700

Factory depreciation .............. 5,600

Factory janitorial work ............. 1,200

Factory insurance ............... 2,600

General and administrative salaries ....... 3,100

Selling expenses .............. 2,300

Required:

1. Calculate the predetermined overhead rate.

2. Calculate the amount of applied manufacturing overhead.

3. Calculate actual manufacturing overhead costs.

4. Compute over- or underapplied overhead.