ABCO Inc. calculates predetermined overhead rates for each department. In the utensil department, the company uses the number of units as the cost driver, and had the following data:

Description	Costs/Units
Total overhead costs last year	$139,240
Total units - last year	65,991 units
Total expected overhead costs this year	150,300
Total units - expected this year	69,900 units

Required:

1. Compute the predetermine overhead rate for the current year? Show computation below.

2. Compute the amount of overhead applied this year if there were actually 71,500 units? Show computation below.

3.Assuming 71,500 units were produced this year and the actual total overhead is $148,500. Compute and indicate the under or overapplied overhead for the current year? Show computation below.

4. How does the applied overhead relate to the actual overhead? When they are not the same, what happens to the difference? Why is actual overhead not assigned to each job?