1. A company allocates overhead at a rate of 150% of direct labor cost. Actual overhead cost for the current period is $950,000, and direct labor cost is $600,000.

Determine whether there is over- or underapplied overhead using T-account.

2. A companys Factory Overhead T-account shows total debits of $624,000 and total credits of $646,000 at the end of a period.

Determine whether there is over- or underapplied overhead using T-account.

Factory Overhead 950,000 900,000 Overhead applied Actual overhead - 50,000 Factory Overhead 624,000 646,000 Overapplied overhead Actual overhead 22,000