1) The Smart Company is located in Toronto, Ontario, Canada. The company has been in business for 10 years and they manufacture electronic components. The company applies manufacturing overhead based on direct labour hours. The financial information pertaining to the manufacturing overhead and labour for the 2022 year is as follows:

Actual manufacturing overhead....................$170,000

Estimated manufacturing overhead...........$180,000

Direct labour hours incurred...................................5,000

Direct labour hours estimated.................................5,625

Answer the following Questions:

a) Calculate the predetermined overhead rate and the amount of overhead applied for the year of 2022.

b) For manufacturing overhead calculate the amount of under applied or over applied.