Applied Factory Overhead; Over-or Underapplied Amount. Normal annual capac-ity for Smythe Company 36,000 machine hours, with fixed factory overhead budgeted as $16,920 and an estimated variable factory over head rate of $2.10 per hour. Dunring October, actual production required 2,700 machine hours, with a total factory overhead of $7,400.
Required: Computer (1) the applied factory overdead and (2) the over-or underapplied amount for October.