M18-15. Developing and using a Predetermined Overhead Rate

Required

a. Determine the 2018 predetermined overhead rate per machine hour.

b. Using the predetermined overhead rate per machine hour, determine the manufacturing overhead applied to Work-in-Process during February.

c. As of February 1, actual overhead was underapplied by $400,000. Determine the cumulative amount of any overapplied or underapplied overhead at the end of February.