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Elm Street Company incurred $440,000 direct labor costs this year. Manufacturing overhead was applied at a predetermined rate of $5.50 per direct labor hour. The

Elm Street Company incurred $440,000 direct labor costs this year. Manufacturing overhead was applied at a predetermined rate of $5.50 per direct labor hour. The average hourly wage rate was $16 per hour. If actual overhead incurred was $160,000, what was the amount of overapplied or underapplied overhead?

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