Computing underapplied and overapplied overhead The Nikie Products Company uses di- rect labor hours as the basis for applying overhead to products. Estimated manufacturing overhead costs for 1992 are $200,000, and estimated direct labor hours for the year are 32,000 hours. During 1992, 36,400 actual direct labor hours were worked and the Manufacturing Over- head Control account had a year end balance of $256,200.

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REQUIRED a. Compute the manufacturing overhead rate for 1992. b. Compute the amount of applied manufacturing overhead for 1992. c. Compute the amount of underapplied or overapplied overhead for the year. d. Compute the actual overhead cost per direct labor hour.