Chloe Corp. uses a job order costing system with manufacturing

overhead applied to products on the basis of direct labor hours.

For the upcoming year, Chloe Corp. estimated total manufacturing

overhead cost at $$480,000$ and total direct labor hours of $40,000.$

During the year actual 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 balance be increased or decreased?