Question 3 of 8 < < 3/12 E !!! Your Answer Correct Answer Your answer is partially correct. Colby Company estimates that annual manufacturing overhead costs will be $600,000. Estimated annual operating activity bases are: direct labor cost $460,000, direct labor hours 40,000 and machine hours 80,000. The actual manufacturing overhead cost for the year was $601,000 and the actual direct labor cost for the year was $456,000. Actual direct labor hours totaled 3. d39,800 and machine h e hours totaled 79,000. Colby applies overhead based on direct labor hours. Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is over- or underapplied and the amount. 25 per direct labor hour Overhead rate : Manufacturing overhead $ 600,000 Underapplied 1000