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Walker Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the years as follows: Actual manufacturing overhead $163,800

Walker Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the years as follows:

Actual manufacturing overhead

$163,800

Estimated manufacturing overhead

$158,600

Direct labor incurred

2,500 hours @ $22 = $55,000

Direct labor estimated

2,600 hours @ $21 = $54,600


How much is over or underapplied overhead at year end?

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