2.2 - Managerial Accounting (3rd Edition) ISBN 978-0-07-782648-2: Chapter 2

Question - Reference attached photo

Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $325,000 and machine hours to be 25,000. Actual manufacturing overhead and machine hours were $372,000 and 26,000, respectively. Compute the predetermined overhead rate. Compute applied manufacturing overhead. Compute over- or underapplied manufacturing overhead