Heavy Metal Products computed its predetermined overhead rate to be $13.50 per machine hour (with expected overhead costs of $124,200 and with 9,200 expected machine hours for the year).

Required: (1) If actual factory overhead costs were $130,000 and total actual machine hours were 9,500 for the year, by how much did Heavy Metal over- or underapply overhead? Use T-accounts to record the actual and applied factory overhead, and to transfer the over- or underapplied overhead to the Cost of Goods Sold account.

(2) What if, instead, actual factory overhead costs were $118,100 and total actual machine hours were 8,900 for the year? Use T-accounts to record the actual and applied factory overhead and to transfer the over- or underapplied overhead to the Cost of Goods Sold account. TLK=2