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Nash Company used a predetermined overhead rate during the year just completed of $4 per direct labor hour, based on an estimate of 27000 direct
Nash Company used a predetermined overhead rate during the year just completed of $4 per direct labor hour, based on an estimate of 27000 direct labor hours to be worked during the year. Actual overhead cost and activity during the year were:
Actual Manufacturing overhead costs incurred: $138000
Actual Direct Labor hours worked: 29000 hours
How much was overhead over-applied or under-applied?
Answer as positive if over-applied and negative if under-applied.
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