Carey Company applies manufacturing overhead costs to products as a percentage of direct labor dollars. Estimated and actual values of manufacturing overhead and direct labor costs are summarized here:

	Estimated		Actual
Direct labor cost	$	600,000	$	550,000
Manufacturing overhead		900,000		850,000

Required:

1. Determine how much overhead to apply to production. Show your calculations. 2. State whether applied overhead was based on actual values, estimated values, or both.

	Actual Values
	Estimated Values
	Both

Show your calculations.