Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $400,000, and direct labor costs to be $2,000,000. Actual overhead costs for the year totaled $380,000, and actual direct labor costs totaled $1,800,000. At year-end, Factory Overhead is:

Select one:

a. Overapplied by $190,000.

b. Neither overapplied nor underapplied.

c. Underapplied by $20,000.

d. Overapplied by $20,000.

e. Overapplied by $40,000.

A company budgets overhead cost of $8,622,500 for the next year. The company uses machine hours as its overhead allocation base. If 470,000 machine hours are planned for the next year, what is the company's plantwide overhead rate? (Round your answer to two decimal places.)

Select one:

a. $18.35 per machine hour.

b. $2.89 per machine hour.

c. $0.05 per machine hour.

d. $0.35 per machine hour.

e. $18.00 per machine hour.