Hamblin Products, Inc. provided the following data for the year:

The company uses a predetermined overhead rate based on direct labor hours. The rate for the year was $5.20 per direct labor hour.
Required:
1. Compute the applied overhead for the year. Is the overhead over- or underapplied? By how much?
2. Prepare a statement of cost of goods manufactured. Did you use actual or applied over¬
head when you prepared the statement of cost of goods manufactured? Explain.

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Labor: Direct labor cost (25,000 hours) $175,000 Indirect labor 35,000 Materials: Direct materials: Inventory, January 1 25,000 Purchases on account 200,000 Issued to production 190,000 Indirect materials (issued) 10,000 Other factory overhead costs: Depreciation 55,000 Maintenance 25,000 Miscellaneous 15,500 Work in process: Beginning inventory 110,000 Ending inventory 80,250