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Calculate the predetermined overhead rate for a company if estimated manufacturing overhead is $100,000 and estimated direct labor hours are 10,000. If actual direct labor

Calculate the predetermined overhead rate for a company if estimated manufacturing overhead is $100,000 and estimated direct labor hours are 10,000. If actual direct labor hours worked during the year are 12,000, calculate the over or underapplied overhead. Discuss the significance of applying overhead costs to production and the implications of over or underapplied overhead on financial reporting.

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