During November, Ironwood Manufacturing used 10,375 direct labor hours and paid direct labor wages of $166,000.The company incurred manufacturing overhead of $368,540 during this same time period.For the entire year, Ironwood estimated total manufacturing overhead would be $4,410,000, direct labor hours would be 126,000, and total direct labor wages would be $1,992,000.Company managers determined that manufacturing overhead would be applied based on direct labor hours.For the month of November, manufacturing overhead was

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Manufacturing overhead applied = (Actual direct labor hours / Estimated direct labor hours) x Estimated manufacturing overhead= (10,375 / 126,000) x 4,410,000= $363,125Manufacturing overhead underapplied = Actual manufacturing overhead - Manufacturing overhead applied= 368,540 - 363,125= $5,415

During November, Ironwood Manufacturing Used 10,375 Direct Labor Hours and Paid