Q: No 1 Daihatsu Company manufacture automobile cars in world. Annual Estimated factory overhead of a company for an expected volume of 1, 80,000 pounds of a product was as follows:

Fixed overhead $36,000

Variable overhead $108,000

Output was 10,000 pounds in June and actual overhead expenses were $ 7,700

Required:

1. The overhead rate per pound
2. Under /Over Applied FOH