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The following data pertain to the Aquarius Hotel Supply Company for the year just ended.
Budgeted sales revenue $ 205,000 Budgeted manufacturing overhead 364,000 Budgeted machine hours (based on practical capacity) 8,000 Budgeted direct-labor hours (based on practical capacity) 20,000 Budgeted direct-labor rate per hour 14 Actual manufacturing overhead 340,000 Actual machine hours 11,000 Actual direct-labor hours 18,000 Actual direct-labor rate per hour 16
Question 1: Compute the firm's predetermined overhead rate for the year using each of the following common cost drivers.
Question 2: Calculate the overapplied or underapplied overhead for the year using each of the following cost drivers.
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