Exercise 4-18 (Part Level Submission) Rector Company manufactures a line of lightweight running shoes. CEO Mark Rector estimated that the company would incur $2,500,000 in manufacturing overhead during the coming year. When Rector ompany uses direct labor hours as its manufacturing overhead application base, predetermined overhead rate is $10.00/DLH and when it uses machine hours as its manufacturing overhead application base, predetermined overhead rate is $6.25/MH. Additionally, he estimated the company would operate at a level requiring 250,000 direct labor hours and 400,000 machine hours. At the end of the year, Rector Company had worked 245,000 direct labor hours, used 410,000 machine hours, and incurred $2,515,000 in manufacturing overhead. (a) Your answer is correct. If Rector Company used direct labor hours as its manufacturing overhead application base, how much overhead was applied to jobs during the year? 2450000 Overhead applied $L (b) Using direct labor hours as the application base, was manufacturing overhead under- or overapplied for the year? By how much? lovs Manufacturing overhead