Packard Products uses a job-costing system for its units, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The following information relates to the Machining Department for the year just ended:

Budgeted manufacturing overhead.......................$8,000,000

Actual manufacturing overhead............................7,975,000

Budgeted machine hours.......................................500,000

Actual machine hours...........................................510,000

The Machining Department data that follow pertain to job no. 243, the only job in production at year-end.

Direct materials.......................$64,800

Direct labor cost........................35,200

Machine hours..............................450

Required:

A. Assuming the use of normal costing, calculate the predetermined overhead rate that is used in the Machining Department.

B. Compute the cost of the Machining Department's year-end work-in-process inventory.

C. Determine whether overhead was under- or overapplied during the year in the Machining Department