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Job Order Costing and OH Variance Scenarios The Solomon Company uses a budgeted overhead rate for applying factory overhead to job orders. Since this is the first year of operating in this manner, the company wants to explore which application base would be best appropriate to use for the two departments, machining and finishing. The company can choose whether they will be using MH or DLH as the basis. The following are from historical records of the company which the OH rates are calculated: At end of 2012 , they sold 50,000 units of their products with the following data: Determine the OH Variance that is closest to the FOH Control in 2012. Indicate if this is an underapplied or overapplied scenario. Note: BOTH answers must be correct to get full credits. Calculate the Applied OH in Machining department that will yield least absolute TOTAL OH Variance