The following information pertains to Trenton Glass Works for the year just ended.

Budgeted direct-labor cost: 70,000 hours (practical capacity) at $16 per hour
Actual direct-labor cost: 80,000 hours at $17.50 per hour
Budgeted manufacturing overhead: $997,500
Actual selling and administrative expenses: 431,000
Actual manufacturing overhead:
Depreciation	$233,000
Property taxes	21,000
Indirect labor	80,000
Supervisory salaries	200,000
Utilities	58,000
Insurance	32,000
Rental of space	301,000
Indirect material (see data below)	77,000
Indirect material:
Beginning inventory, January 1	47,000
Purchases during the year	93,000
Ending inventory, December 31	63,000

References

Section BreakExercise 3-34 Overapplied or Underapplied Overhead (LO 4, 5)

1.

value: 0.83 points

Required information

Exercise 3-34 Part 1

Required:
1.	Compute the firms predetermined overhead rate, which is based on direct-labor hours. (Round your answer to 2 decimal places. Omit the $ sign in your response.)

Predetermined overhead rate

$ per hour

References

WorksheetExercise 3-34 Part 1

2.

value: 0.83 points

Required information

Exercise 3-34 Part 2

2.	Calculate the overapplied or underapplied overhead for the year. (Omit the $ sign in your response.)