Question 1)

a)

b)

All select options are: Overapplied/Underapplied

Rossi Ind. $ 42000 $ 70000- Malik Co. estimated that overhead costs will be $240,000 and will be driven by machine hours estimated at 32,000 hours 60 % % of direct labor cost; Malik Co. $ 24000 = $ 7.50 per machine hour 32000 Cuttner Ltd. estimated that overhead costs will be $320,000 and will be driven by the units produced, estimated at 400 units. Cuttner Ltd. $32000 = $ 800 | per unit produced 400