: Nash Company and Mayer Company assign manufacturing overhead to Work in Process Inventory using direct labor cost. The following information is available for the companies for the year.

	Nash Company	Mayer Company
Actual manufacturing overhead	$160,000	$300,000
Actual direct labor hours	20,000	24,000
Underapplied overhead		12,000
Overapplied overhead	24,000

Required

A: Compute the predetermined overhead rate for each company.

Predetermined overhead rate = Estimated overhead / estimated labor cost

B: Determine the amount of overhead cost that would be applied to Work in Process Inventory for each company.

C: Compute the amount of overapplied or underapplied manufacturing overhead cost for each company.