A manufacturing company applies factory overhead based upon direct hours. At the beginning of the year, it is estimated the factory overhead costs would be $360,000 and direct labor hours would be 45,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 46,000. What is the pre-determined overhead rate per direct labor hour?

8

7.83

8.20

8.38

Cavity Dental Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all the jobs were 4,780. If the actual factory overhead totaled $141,800, determine the over or under applied amount for the month

$8,255 over applied

$7,575 over applied

$8,255 under applied

$7,575 under applied