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Carera Corporation uses a predetermined overhead rate of $23.10 per direct labour-hour. This predetermined rate was based on 12,000 estimated direct labour-hours and $277,200 of estimated total manufacturing overhead. The company incurred actual total manufacturing overhead costs of $266,000 and 12,600 total direct labour-hours during the period.
Required:
Determine the amount of manufacturing overhead applied to units of product during the period as well as the amount of over- or underapplied overhead for the period.
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