(Underapplied or overapplied overhead) For 1998, Specialty Advertising Products Company applied overhead to jobs using a predetermined overhead rate of $11.60 per machine hour. This rate was derived by dividing the company’s total budgeted overhead of $278,400 by the 24,000 machine hours anticipated for the year.

At the end of 1998, the company’s manufacturing overhead control account had debits totaling $283,300. Actual machine hours for the year totaled 25,100.

a. How much overhead should be debited to Work in Process Inventory for 1998?

b. Is overhead underapplied or overapplied and by how much?

c. Job #47 consumed 1,400 machine hours during 1998. How much overhead should be assigned to this job for the year?

d. Describe the disposition of the underapplied or overapplied overhead deter¬ mined in part b.

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