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TB MC Qu. 3-165 Baka Corporation applies manufacturing overhead ... Baka Corporation applies manufacturing overhead on the ba
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rate positively ..

Predetermined overhead rate = Budgeted overhead/total direct labor hr
Overhead rate = 244800/9800
Rate =       24.98 per direct labor hr
Allocated overhead = Direct labor hr*Direct labor hr
A Allocated overhead = 157374
B Actual overhead = 245400
C=B-A Underapplied overhead = 88026
Therefore answer = 88026 Underapplied
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