Question: Boxcar, Inc., which uses a predetermined overhead rate based on direct labor hours. Use the information below to answer the following 3 questions: Total manufacturing

Boxcar, Inc., which uses a predetermined overhead rate based on direct labor hours. Use the information below to answer the following 3 questions:

Total manufacturing overhead

Direct labor-hours

Estimated

$160,000

8,000 hours

Actual

$172,500

7,050 hours

a. Calculate Boxcars predetermined overhead rate.

b. Calculate Boxcar's applied overhead.

c. How much was Boxcar's over- or under-applied overhead?

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