Hutchins Company uses a predetermined overhead rate based on direct labor hours (DLH) to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead to be $200,000 and DLH to be 20,000. The actual figures for the year were $215,000 for manufacturing overhead and DLH 21,000. 

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

Answer rating: 100% (QA)

First we need to calculate the predetermined overhead rate Predetermined ov... View the full answer