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

	Rooney Company				Solomon Company
Actual direct labor cost	$	148,000			$	173,000
Estimated direct labor cost		153,000				101,000
Actual manufacturing overhead cost		54,100				91,000
Estimated manufacturing overhead cost		70,380				84,840

Required

1. Compute the predetermined overhead rate for each company.

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

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

1. Rooney Company: direct labor dollar

Solomon Company: direct labor dollar

2.

	Overhead Cost
Rooney Company
Solomon Company

3. Amount: Over/Under Applied:

Rooney Company

Solomon Company