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Mason Company estimates that annual manufacturing overhead costs will be $600,000. Estimated annual operating activity bases...

Mason Company estimates that annual manufacturing overhead costs will be $600,000. Estimated annual operating activity bases are: direct labor cost $460,000, direct labor hours 40,000 and machine hours 80,000. The actual manufacturing overhead cost for the year was $601,000 and the actual direct labor cost for the year was $456,000. Actual direct labor hours totaled 39,800 and machine hours totaled 79,000. Melanie applies overhead based on direct labor hours.

Required: 12. Predetermined overhead rate 13. Determine the amount of manufacturing overhead applied. 14. Determine the amount of underapplication of overhead.
  

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