Hints:

• PA9 (c) you should calculate the overhead was under-applied for the period by $9,000.
• PA11 (b) you should calculate the overhead was over-applied for the period by $2,000.

PA9. LO 4.6 Mountain Peaks applies overhead on the basis of machine hours and reports the following information: Budget Actual Overhead $350,000 $352,000 Machine hours 50,000 49,000 Direct materials $210,000 Direct labor $350,000 A. What is the predetermined overhead rate? B. How much overhead was applied during the year? C. Was overhead over- or underapplied, and by what amount? D. What is the journal entry to dispose of the over- or underapplied overhead? PA11. LO 4.6 When setting its predetermined overhead application rate, Tasty Box Meals estimated its overhead would be $100,000 and would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $102,000 and required 26,000 machine hours. A. Determine the predetermined overhead rate. B. What is the overhead applied during the year? C. Prepare the journal entry to eliminate the underapplied or overapplied overhead