Cadburn Corporation uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Cadburn Corporation estimated total manufacturing overhead cost at $404,550 and total direct labor hours of 52,200. During the year, actual manufacturing overhead incurred was $420,280 and 53,200 direct labor hours were used.

Required:

Calculate the predetermined overhead rate.

Calculate how much manufacturing overhead will be applied to production.

Is overhead over- or underapplied? By how much?

What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased?

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