(Predetermined OH rates) Warlaski Corp. prepared the following 2007 abbre¬ viated flexible budget for different levels of machine hours:

c. All actual overhead costs are equal to expected overhead costs in 2007, but Warlaski Corp. produced 5,600 units of product. If the separate rates based on units of product calculated in part

(a) were used to apply overhead, what amounts of underapplied or overappled variable and fixed overhead exist at year-end 2007?LO1.

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10,000 11,000 12,000 Variable factory overhead $ 40,000 164,700 $ 44,000 164,700 $ 48,000 164,700 Fixed factory overhead 13,000 $ 52,000 164,700 Each product requires 2 hours of machine time, and the company expects to produce 5,490 units in 2007. Production is expected to be evenly spread throughout the year. a. Calculate separate variable and fixed overhead rates using as the basis of application (1) units of product and (2) machine hours. b. Calculate the combined overhead rate using (1) units of product and (2) machine hours.