Yista Corporation uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The company estimated manufacturing overhead at $510,000 for the year and direct labor hours at 100,000 hours. Actual manufacturing overhead costs incurred during the year totaled $540,000. Actual labor hours were 105,000.

What was the over-applied or under-applied overhead for the year?

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Predetermined Overhead Rate 510000 1... View the full answer