Boxcar, Inc., which uses a predetermined overhead rate based on direct labor hours. Use the information below to answer the following 3 questions:

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Boxcar, Inc., which uses a predetermined overhead rate based on direct labor hours. Use the information below to answer the following 3 questions:

Total manufacturing overhead

Estimated

$160,000

Direct labor hours8,000 hours

Actual

$172,500

Direct labor-hours 7,050 hours

a. Calculate Boxcar’s predetermined overhead rate.

b. Calculate Boxcar’s applied overhead.

c. How much was Boxcar’s over- or under-applied overhead?

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