13-41 Underapplied and Overapplied Overhead San Antonio Welding Company applies factory overhead at a rate of $8.20 per direct-labor hour. Selected data for 20X0 operations are as follows (in thousands): Case 1 Case 2 Direct-labor hours 25 35 Direct-labor cost $224 $250 Indirect-labor cost 29 43 Sales commissions 22 10 Depreciation, manufacturing equipment 16 33 Direct-materials cost 228 247 Factory fuel costs 36 49 Depreciation, finished-goods warehouse 8 19 Cost of goods sold 415 505 All other factory costs 137 207 Compute for both cases 1. factory overhead applied. 2. total factory overhead incurred. 3. amount of underapplied or overapplied factory overhead.