Question: Orcasa, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $ 1 2 ,

Orcasa, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $12,000,000, and total direct labor hours to be 400,000 hours.
In April, Orcasa incurred actual overhead costs of $1,125,000 and used 40,000 hours.
1. Calculate Orcasas predetermined overhead rate.
Predetermined overhead rate per direct labor hour: $Answer 1
2. How much was Orcasas over- or under-applied overhead for the month of April?
Note: Do not use a negative sign.
Orcasa Answer 2overunder -applied overhead by $Answer 3 for the month of April.

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