A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $482,910 and direct labor hours would be 48,291. Actual factory overhead costs incurred were $520,224, and actual direct labor hours were 54,190. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

a. $58,990 underapplied b. $21,676 overapplied c. $541,900 overapplied d. $21,676 underapplied

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $338,200 and direct labor hours would be 45,600. Actual manufacturing overhead costs incurred were $309,300, and actual direct labor hours were 51,700. What is the predetermined overhead rate per direct labor hour?

a.$8.90

b.$11.13

c.$5.93

d.$7.42