Chamberlain Manufacturing produces three models of water softeners: the standard model, the super model, and the deluxe model. The models differ in the features offered and the warranties given to customers. The deluxe model has the most features and the best warranty. Chamberlain applies product-sustaining overhead to each product based on the number of hours of engineering time. It estimates that a total of 7,500 engineering hours will be required in the coming period and that product-sustaining overhead costs will be $ 225,000.
At the end of the period, it was discovered that the standard model required 1,200 engineering hours, the super model used 2,000 engineering hours, and the deluxe model required 5,800 engineering hours. The actual product- sustaining overhead for the period was $ 250,000. Determine the amount of overhead applied to each product line during the year. Determine the amount of over- or under applied overhead.