Developing and Using a Predetermined Overhead Rate Assume that the following predictions were made for 2009 for one of the plants of Milliken & Company:

Total manufacturing overhead for the year	$44,000,000
Total machine hours for the year	2,000,000

Actual results for February 2009 were as follows:

Manufacturing overhead	$5,510,000
Machine hours	310,000

A) As of February 1, actual overhead was underapplied by $500,000. Determine the cumulative amount of any overapplied or underapplied overhead at the end of February.