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Question - When setting its predetermined overhead application rate, Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours.
Required -
i) Determine the predetermined overhead rate.
ii) What is the overhead applied during the year?
iii) Determine the under- or overapplied overhead.
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