Q1. Jubilee Company applies manufacturing overhead on the basis of machine-hours. On December 31, the company's manufacturing overhead control T-account included the following amounts for the whole year.

Manufacturing Overhead Control
5,795,606	6,160,000

At the beginning of the year, management estimated overhead to be $6 million and the allocation base to be 375,000 machine-hours.

Required:

1. Compute the predetermined overhead rate for the year. How many machine-hours were actually consumed during the year?

2. What is the amount of actual overhead cost incurred for the year?

3. At the end of the year, did the company over-apply or under-apply overhead, and by how much?

Q2. Production overheads such as factory depreciationmay be inventoriable on the balance sheet if goods are incomplete or unsold at the end of a period.

True or False

Q3.