Page 3 of 12 3 Bennet Company is considering using a predetermined overhead rate based on capacity instead of estimated units produced. The capacity of the factory is 150,000 units (without excessive overtime). The estimated manufacturing overhead cost at that level of production is $234,000. If Bennet used the capacity-based predetermined rate to apply manufacturing overhead cost, calculate the over- or under-applied overhead cost for the first quarter. Additional information for the first quarter: Manufacturing overhead, actual $ 210,000 Number of units produced, actual 130,000 units Under the capacity method, the allocated overhead cost would be: A. Underapplied by $7200 B. Overrapplied by $7200 C. Underapplied by $31200 D. Overapplied by $31200 E. None of the above 4 For its first year of operations, Darcy Company estimated manufacturing overhead (MOH) would be $108,000, and the company chose to apply MOH using a predetermined overhead rate based on estimated direct labor-hours (DLHS). For the year, debits to its Work in Process account totaled $550,000 and credits totaled $480,000. While management estimated that employees would work 18,000 DLHs, business was stronger than expected and actual DLHs totaled 20,000 hours. Darcy's ending work in process inventory consisted of one job, Job 42. The job had been charged with $28,000 of direct- labor cost, which consisted of 2,000 actual DLHs. The direct materials cost in Job 42 totaled: A. $ 39,000 B. $ 30,000 c. $ 28,000 D. $ 32,000 E. None of the above