The Collins Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of materials used in production. At the beginning of the most recent year, the following estimates were made as a basis for computing the predetermined overhead rate for the year: Manufacturing overhead cost: 400000 Direct materials cost: $250000 The following transactions took place during the year (all purchases and services were acquired on account): 1.) Raw materials purchased: $90000. 2.) Raw materials requisitioned for use in production (95% direct 5% indirect): 150000. 4.) Maintenance costs incurred in the factory: $25,000. 7.) Rental cost incurred on buildings: $75,500 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration). 8.) Manufacturing overhead cost was applied to jobs based on actual direct material cost

the following employee costs were incurred and paid for

Direct labour 200000, Indirect labour 100000 administrative salaries 125000

part 1 calculate the total amount of actual overhead charged to manufacturing overhead

part 2calculate the over or under applied overhead