E2-18 (Algo) Calculating Actual and Applied Manufacturing Overhead Costs and Over- or Underapplied Overhead Costs [LO 2-3, 2-4, 2-5, 2-6]

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $193,000. Estimated direct labor cost was $478,640 for 19,300 hours.

Actual costs for the most recent month are summarized here:

Item Description	Total Cost
Direct labor (1,930 hours)	$	47,865
Indirect costs
Indirect labor		2,540
Indirect materials		3,450
Factory rent		3,210
Factory supervision		4,840
Factory depreciation		5,600
Factory janitorial work		1,280
Factory insurance		1,790
General and administrative salaries		4,240
Selling expenses		5,340

Required: 1. Calculate the predetermined overhead rate.

2. Calculate the amount of applied manufacturing overhead.

3. Calculate actual manufacturing overhead costs.

4. Compute over- or underapplied overhead.