1) Hour at a Time Inc. computes its predetermined overhead rate annually on the basis of direct labour hours. At the beginning of the year, it estimated that its total manufacturing overhead would be $875,000 and the total direct labour would be 50,000 hours. Its actual manufacturing overhead for the year was $925,000 and its actual total direct labour was 52,000 hours.

By how much was manufacturing overhead underapplied or overapplied. (For underapplied answer as positive, for overapplied answer as negative.)

2) Hoodwin Corp. produces magic sets. The company started the month with 3,750 sets in beginning work in process inventory. Last week, the company completed and transferred 32,500 sets, while ending the period with 2,575 units partially completed, 100% of direct materials has been applied to the sets, however conversion is only completed to 80% . How many equivalent units would the company use in order to apply conversion cost to ending work in process inventory?

Hour at a Time Inc. computes its predetermined overhead rate annually on the basis of direct labour hours. At the beginning of the year, it estimated that its total manufacturing overhead would be 5875.000 and the total direct labour would be 50,000 hours. Its actual manufacturing overhead for the year was 1925,000 and its actual total direct labour was 52,000 hours. By how much was manufacturing overhead underapplied or overapplied for underapplied answer es positive, for everapplied answer as negative.)