E2-18 (Algo) Calculating Actual and Applied Manufacturing Overhead Costs and Over- or Underapplied Overhead Costs [LO 2-3, 2-4, 2-5, 2-6] Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $175,570. Estimated direct labor cost was $423,540 for 18,100 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct labor (1,810 hours) $ 42,355 Indirect costs Indirect labor 2,480 Indirect materials 3,440 Factory rent 3,290 Factory supervision 4,740 Factory depreciation 5,730 Factory janitorial work 1,280 Factory insurance 1,880 General and administrative salaries 4,250 Selling expenses 5,380 Required: 1. Calculate the predetermined overhead rate. 2. Calculate the amount of applied manufacturing overhead. 3. Calculate actual manufacturing overhead costs. 4. Compute over- or underapplied overhead.