Swifty Manufacturing Company, a small manufacturer of appliance parts, has just completed its first year of operations. The companys controller, Donald Martin, has been reviewing the results for the year and is concerned about the application of factory overhead. Trainor is using the following information to assess operations.

	Swifty uses several machines with a combined cost of $2,300,000 and no residual value. Each machine has an output of 6 units of product per hour and a useful life of 29,000 machine hours.
	Selected actual data on Swiftys operations for the year just ended are as follows:

Products manufactured			699,000	units
Machine use			147,000	hours
Direct labor			25,000	hours
Labor rate		$	15	per hour
Total factory overhead		$	1,180,000
Cost of Goods Sold		$	1,734,160
Finished Goods Inventory (year-end)		$	446,240
Work in Process Inventory (year-end)		$	0

Total factory overhead is applied based on direct labor cost using a predetermined plantwide rate.

Budgeted activity for the year included 10 employees each working 1,800 productive hours per year to produce 607,500 units of product. Because the machines are highly automated, each employee can operate two to four machines simultaneously. Normal activity is for each employee to operate three machines. Machine operators are paid $15 per hour. Overhead was budgeted at $810,000

.Based on Swifty Manufacturing Companys actual operations over the past year, was manufacturing overhead underapplied or overapplied? By how much? (Round OH rate to 0 decimal places, e.g. 52%.)

Predetermined overhead rate

enter the predetermined overhead rate in percentage of direct labor cost % of direct labor cost

Overhead select an option OverappliedUnderapplied by $enter a dollar amount