The FSR Company uses a budgeted factory overhead rate to apply manufacturing overhead to production. The rate is based on direct labour hours. Estimates for the year 2006 are given below: 
During 2006 the Paine Company used 60,000 direct labour hours. At the end of 2006, the company's records revealed the following information: 
a. Calculate the budgeted overhead rate for 2006.
b. Determine the amount of underapplied or overapplied overhead for 2006.
c. If underapplied or overapplied overhead is treated as an adjustment to cost of goods sold, determine the cost of goods sold that would appear on the company's income statement.
Definitions:
Descriptive Data
Statistical calculations and summaries that describe the main features of a dataset, often through measures of central tendency and variability.
Variability
Refers to the extent to which data points in a dataset differ from each other and from the mean.
Distribution
The way in which values of a variable or a set of variables are spread or dispersed across a range.
Variability
The extent to which data points in a data set differ from each other and from the mean of the dataset.
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