A company uses direct labor hours to determine its predetermined overhead rate .At the beginning of the
year, the estimated direct labor hours were 115,700 hours, and the estimated overhead was $3,471,000,
resulting in a predetermined overhead rate of $30 per direct labor hour.
The following actual information was available at the end of the year:
Depreciation on factory equipment	$2,000,000
Chief financial officer salary		$90,000
Indirect materials			$100,000
Factory electricity			$750,000
Direct labor				$300,000
Direct material				$235,000
Rent on administrative offices		$100,000
Rent on factory building			$561,000
Acutal direct laobr hours			116,700
What is the amount of the underapplied or overapplied overhead?
10,000 underapplied
30,000 overapplied
90,000 overapplied
190,000 overapplied
100,000 underapplied