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P4-16 LO5 LO6 07 Determining the under-and overapplied overhead Dirk Corp. has four departmental accounts: Building Mainte- nance, General Factory Overhead, Machining, and Assembly The direct labor hour method is used to apply factory overhead to the jobs being worked on in Machining and Assembly. The company expects each production department to use 30,000 direct labor hours during the year. The estimated overhead rates for the year include the following