Refer to the data in Exercise 4-12. At the end of the year, Rector Company had worked 245,000 direct labor hours, used 410,000 machine hours, and incurred $2,515,000 in manufacturing overhead.

In Exercise 4-12

Rector Company manufactures a line of lightweight running shoes. CEO Mark Rector estimated that the company would incur $2,500,000 in manufacturing overhead during the coming year. Additionally, he estimated the company would operate at a level requiring 250,000 direct labor hours and 400,000 machine hours.

Required

a. If Rector Company used direct labor hours as its manufacturing overhead application base, how much overhead was applied to jobs during the year?

b. Using direct labor hours as the application base, was manufacturing overhead under- or over applied for the year? By how much?

c. If Rector Company used machine hours as its manufacturing overhead application base, how much overhead was applied to jobs during the year?

d. Using machine hours as the application base, was manufacturing overhead under- or over applied for the year? By how much?