Estimated overhead
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Dukes Company used a predetermined overhead rate this year of 1.7 per direct labor hour, based on an estimate of 22,000 direct labor hours to be worked during the year. Actual costs and activity during the year were:
Actual manufacturing overhead cost incurred 36,150
Actual direct labor hours worked 20,500
The under- or overapplied overhead for the year was:
1,300 underapplied
2,550 overapplied
2,550 underapplied
1,300 overapplied
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This provides the steps to compute the Estimated overhead
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