Chihuahua Vision, Inc. produces polarized sunglasses. During the most recent period, Chihuahua Vision, Inc. incurred the following costs (amounts are in thousands): Product or

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Chihuahua Vision, Inc. produces polarized sunglasses. During the most recent period, Chihuahua Vision, Inc. incurred the following costs (amounts are in thousands): Product or Cost Item Amount ($000) Period Direct or Indirect Sunglass lenses $ 200 Sunglass frames 105 Insurance on factory 55 Insurance on corporate headquarters Utility cost in corporate headquarters Advertising Wages for factory workers 45 10 15 160 Utility costs in plant 34 Plant supervisor salaries 90 Depreciation of plant assets 25 Salaries and commissions of salespeople 100 Required: a. Complete the above table by classifying each cost as either a product cost or a period cost; for costs classified as product costs, further classify as a direct or an indirect cost. b. Calculate total direct costs and total indirect (MOH) costs. C. Assume Chihuahua Vision, Inc. used a budgeted MOH rate to apply MOH costs this year of $200,000. How much did the company underapply or overapply for its MOH costs? How could this difference happen?