Wania Fabrics computes its predetermined overhead rate annually on the basis of direct laborhours.

At the beginning of the year, it estimated that 22,000 direct labor-hours would be required

for the periods estimated level of production. The company also estimated $94,000 of fixed manufacturing

overhead expenses for the coming period and variable manufacturing overhead of $2.25

per direct labor-hour. Harriss actual manufacturing overhead for the year was $123,900 and its

actual total direct labor was 23,200 hours.

Required:

Compute the companys predetermined overhead rate for the year.

Calculate overapplied/ overapplied overhead for the period.