Herbal Vitamex, Inc., uses a predetermined overhead rate to apply overhead.

Overhead is applied on the basis of direct labor hours in the mixing department and on the basis of machine hours in the tableting department. At the beginning of 2001, the following estimates are provided for the coming year: lop5

Required:

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Mixing Tableting Direct labor hours 100,000 10,000 Machine hours 10,000 140,000 Direct labor cost $900,000 $190,000 Overhead cost $300,000 $196,000 Actual results reported for 2001 are as follows: Mixing Tableting Direct labor hours 98,000 21,000 Machine hours 11,000 144,000 Direct labor cost $882,400 $168,000 Overhead cost $301,000 $206,000