Maintenance $20000 Indirect materials $20000 Indirect labor $90000 Factory rent

Maintenance $20000
Indirect materials $20000
Indirect labor $90000
Factory rent $80000
Depreciation $110000
Payroll taxes $80000
Other $20000
Total $420000
Calculate the over/under-applied overhead for the year.
2. Arnold Company manufactured two products A and B during April. For purposes of product costing an overhead rate of $2.50 per direct-labor hour was used based on budgeted annual factory overhead of $500000 and 200000 budgeted annual direct-labor hours as follows:
Budgeted Overhead Budgeted Hours
Department 1 $300000 100000
Department 2 $200000 100000
Total $500000 200000
The number of labor hours required to manufacture each of these products was:
Product A Product B
Department 1 3 1
Department 2 1 3
Total 4 4
During April production units for products A and B were 1000 and 3000.
(a) Using a plantwide overhead rate what are total overhead costs assigned to products A and B respectively?
(b) Using departmental overhead rates what are total overhead costs assigned to products A and B respectively?