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Logan Products computes its predetermined overhead rate annually on the basis of machine-hours. At the beginning of the year, it estimated that its total manufacturing overhead would be $357,500 and machines would be run a total of 24,500 hours. Its actual total manufacturing overhead for the year was $345,400 and its actual total machine-hours was 24,000 hours.
Required:
Question 1: Compute the company's predetermined overhead rate for the year, calculate the total overhead applied, and determine the amount of under- or overapplied overhead in the year. (Round your predetermined overhead rate to 2 decimal places.)
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