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Rose Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing...

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Accounting

Rose Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs.

On January 1, the estimates for the year were:

Manufacturing overhead $300,000

Direct labor hours 12,000

During year, the actual results were:

Manufacturing overhead $270,000

Machine hours 14,000

Direct labor hours 11,500

Compute the amount of over or under applied factory overhead if any and indicate the type too.

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