My Company has a predetermined overhead rate of 150% of direct labor cost. Estimated overhead for the period was $300,000. The actual cost for direct labor was $225,000 and actual overhead was $335,000. How much overhead was applied? How much was over- or under-applied overhead? *

Applied $337,500 so overhead is overapplied by $37,500

Applied is $300,000 so overhead is underapplied by $35,000

Applied is $337,500 so overhead is overapplied by $2,500.

Some other answer or I don't know.