Baxter Corp uses a normal job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Baxter Corp estimated total manufacturing overhead cost at $480,000 and total direct labor hours of 40,000. During the year actural manufacturing overhead incurred was $462,500 and 41,000 direct labor hours were used.

a. Calculate the predetermined overhead rate

b. calculate how much manufacturing overhead will be applied to production.

C. Is overhead over- or underapplied ? by how much?

d. what account should be adjusted for over- or underapplied overhead? should the balcance be increased or decreased?