Exercise 15-5 (Part Level Submission)

Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $292,552for the year, and machine usage is estimated at126,100hours.

For the year, $413,432of overhead costs are incurred and130,100hours are used.

Compute the manufacturing overhead rate for the year.(Round answer to 2 decimal places, e.g. 1.52.)

Manufacturing overhead rate $ 2.32 per machine hour

What is the amount of under- or overapplied overhead at December 31?

Manufacturing Overhead $________

1. Overapplied

1. Underapplied