pany uses a predetermined overhead rate of $4 per direct labor hour to apply overhead. During the year, 30,000 direct labor hours were worked. Actual overhead costs for the year were $110,000. Bo bkim's overhead variance would be? a. $2,500 Underapplied. b, $2,500 Overapplied. over h Var,ann.. c. $10,000 Underapplied. $10,000 Overapplied. d, For the accounting period just ended, Abway Company's actual overhead costs equaled estimated overhead. Actual direct labor hours exceeded estimated direct labor hours used to calculate the predetermined overhead rate. If overhead is applied using the predetermined 7. overhead rate, then overhead would be a. Overapplied b. Underapplied. d. Cannot be determined from the information given. Use the following information to answer question 8. The following information is provided for the year: $225,000 25,000 20,000 $200,000 The budgeted overhead used to calculate the predetermined rate must have been Actual overhead Actual machine hours worked Budgeted machine hours Applied overhead Jo a , 8 $160,000. b. $250,000 c. $225,000. d. $200,000