Exercise #1. Donald's Ducks Estimated annual fixed production overheads Estimated annual volume of activity $500,000 100,000 direct labor hours a. What is the OAR for fixed production overheads based on DLH? b. Scenario #1: At the end of the year, it was determined that the actual direct labor hours during the year were 100,000 and the actual total fixed overhead was $525,000. True/False (circle one): Fixed overhead costs were overabsorbed. The amount of the under/overabsorption (circle one) was $_ Unless COGS is adjusted, profit will be overstated / understated (circle one) by that amount. c. Scenario #2: At the end of the year, it was determined that the actual direct labor hours during the year were 112,000 and the actual total fixed overhead was $500,000 The amount of fixed overhead absorbed by / allocated to production was $ Unless COGS is adjusted, profit will be overstated / understated (circle one) by that amount