1. Owly Corporations appliance division uses a predetermined overhead rate to apply overhead to the products produced. The appliance division uses machine hours as the cost driver for overhead. For fiscal year 2020, Owlys appliance division estimated total machine hours at 40,000 hours and estimated total overhead at $1,080,000. In fiscal year 2020, actual overhead was $1,110,000 and actual machine hours were 42,050.

A. What is the predetermined overhead rate for Owlys appliance division for fiscal year 2020?

B. How much overhead was applied/allocated in fiscal year 2020?

C. Was overhead over or under applied and by how much?