Doug founder of a company named Wiggle Inc. Wiggle Inc produces specialty functional novelty hammers in the image of Doug himself. The three best-selling/most popular products sold by Wiggle Inc. are Hammer Head Hammers, Hammer Pants Hammers, and Please Hammer Don't Hurt Em Mini Hammers.

Wiggle Inc. uses the actual total factory overhead costs from the prior year (corresponding month) to estimate the total factory overhead costs. They do this by taking last years actual costs (same month) and increasing them by 7%. The result is rounded to the nearest $100.

Actual Total Factory Overhead costs March '18 = $2,490,210

For the month of March '19 for the production in the 2 Legit Warehouse

Estimated Machine Hours = 3,650

Hammer Head Hammers = 1,400 machine hours

Hammer Pants Hammers = 975 machine hours

Mini Hammers = 1,625 machine hours

Actual Total Factory Overhead costs March '19 = $2,828,000

What is the predetermined overhead rate?

	A.	$622.55 / machine hour
	B.	$666.13 / machine hour
	C.	$682.25 / machine hour
	D.	$730.00 / machine hour

If the predetermined factory overhead rate was applied to the three products in March (question #1) what would be the under/over applied factory overhead once the actual factory overhead cost was known?

	A.	$92,000 overapplied
	B.	$163,500 underapplied
	C.	$163,500 overapplied
	D.	$247,450 underapplied

Using the data from (question #1) how much factory overhead would be applied to Hammer Pants Hammers?

	A.	$649,472
	B.	$665,194
	C.	$711,750
	D.	$755,425