Calculating Factory Overhead

Estimated Direct Labor Hours	125,000
Estimated Direct Labor Dollars	$5,454,545
Estimated Factory Overhead	$3,000,000
Actual Direct Labor Hours	200,000
Actual Direct Labor Dollars	$6,500,000
Actual Factory Overhead Costs	$2,800,000

The company's applies overhead to products based on Direct Labor Dollar:

A) Calculate the predetermined factory overhead rate based on Direct Labor Dollars.

B) Use the predetermined overhead rate to apply overhead to products.

C) Calculate the over/underapplied overhead