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Lynne Company used a predetermined overhead rate during the year just completed of $3.50 per direct labour hour, based on an estimate of 22,000 direct

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Lynne Company used a predetermined overhead rate during the year just completed of $3.50 per direct labour hour, based on an estimate of 22,000 direct labour hours to be worked during the year. Actual overhead cost and activity during the year were: \begin{tabular}{|l|r|} \hline Actual manufacturing overhead cost incurred & $90,000 \\ \hline Actual direct labour hours worked & 25,000 \\ \hline \end{tabular} a) What is the general equation to calculate the Predetermined Overhead Rate? b) Enter the numbers you know into the general formula. c) Calculate the Estimated overhead costs d) Calculate the applied total overhead e) Calculate the underapplied or overapplied overhead

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