Simco Company estimates that annual manufacturing overhead costs will be $2,400,000 for 2020. The actual overhead costs at the end of 2020 are $2,490,000. Activity base information for 2020 follows:

Activity Base Estimated Actual

Direct Labor Cost $1,150,000 $1,575,000

Direct Labor Hours 100,000 106,000

Machine Hours 75,000 76,000

Instructions

(a) Compute the predetermined overhead rate for each activity base.

(b) Compute the amount of overhead applied in 2020 for each activity base.

(c) Compute the amount of under- or overapplied overhead for 2020 for each activity base.