Exercise 3-35 Overapplied or Underapplied Overhead (LO 4, 5)

The following information pertains to Paramus Metal Works for the year just ended.


Budgeted direct-labor cost: 77,000 hours at $17 per hour

Actual direct-labor cost: 79,000 hours at $18 per hour

Budgeted manufacturing overhead: $993,300

Budgeted selling and administrative expenses: $417,000

Actual manufacturing overhead:

Depreciation
$
225,000

Property taxes

19,000

Indirect labor

79,000

Supervisory salaries

210,000

Utilities

58,000

Insurance

32,000

Rental of space

295,000

Indirect material (see data below)

79,000

Indirect material:



Beginning inventory, January 1

46,000

Purchases during the year

95,000

Ending inventory, December 31

62,000




Calculate the overapplied or underapplied overhead for the year. (Omit the "$" sign in your response.)

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