Nash Company and Mayer Company assign manufacturing overhead to Work in Process Inventory using direct labor cost. The following information is available for the companies for the year:

Required
a. Compute the predetermined overhead rate for each company.
b. Determine the amount of overhead cost that would be applied to Work in Process Inventory for each company.
c. Compute the amount of overapplied or underapplied manufacturing overhead cost for eachcompany.

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Nash Company Mayer Company Actual direct labor cost Estimated direct labor cost Actual manufacturing overhead cost Estimated manufacturing overhead cost $160,000 150,000 58,000 60,000 $90,000 100,000 76,000 80,000