Maya Manufacturing Co. uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. This year, the company worked 67000 actual direct labor hours and incurred $255000 of actual manufacturing overhead cost. However, the company had estimated that it would work 54000 direct labor hours during the year. If the company under-applied overhead by $6000, what was the estimated or budgeted overhead?

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Calculating the Estimated Overhead Heres how to calculate the estimated or budgeted overhead for May... View the full answer