1) Aksamit Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below:

Estimates made at the beginning of the year:

Estimated machine-hours: 62,000

Estimated variable manufacturing overhead: $7.03 per machine-hour

Estimated total fixed manufacturing overhead: $1,486,140

Actual machine-hours for the year: 61,100

Calculate the predetermined overhead rate used for the recently completed year.

2) If Aksamit Corporation had used actual costing, rather than normal costing, to account for manufacturing overhead, and actual overhead for the year was equal to the budgeted amounts, what is the amount of over- or under-allocated overhead for the year?

A) zero

B) $27,900 over allocated

C) $27,900 under allocated

D) $366,830 under allocated