Alberton Electronics makes inexpensive GPS navigation devices and uses a normal cost system that applies overhead based on machine hours. The following current year budgeted data are available:

Variable factory overhead at 100,000 machine hours	$250,000
Variable factory overhead at 150,000 machine hours	375,000
Fixed factory overhead at all levels between 10,000 and 180,000 machine hours	288,000

Practical capacity is 180,000 machine hours; expected capacity is two-thirds of practical. a. What is Alberton Electronics predetermined VOH rate?

Predetermined VOH rate		per MH

b. What is the predetermined FOH rate using practical capacity?

Predetermined FOH rate		per MH

c. What is the predetermined FOH rate using expected capacity?

Predetermined FOH rate		per MH

d. During the year, the firm records 110,000 machine hours and $542,000 of overhead costs. (1) How much variable overhead is applied?

Applied VOH

Applied FOH

(2) How much fixed overhead is applied using the rate found in (b)?

(3) Calculate the total under- or overapplied overhead for the year using the rate found in (b). Note: Do not use a negative sign with your answer.

	OverappliedUnderappliedNeither over- or underapplied

(4) How much fixed overhead is applied using the rate found in (c)?

Applied FOH

(5) Calculate the total under- or overapplied overhead for the year using the rate found in (c). Note: Do not use a negative sign with your answer.

	OverappliedUnderappliedNeither over- or underapplied