Bush Company and Hunt Company base their predetermined overhead rates on machine hours. The following information pertains to the companies€™ most recent accounting periods.

Required
a. Compute the predetermined overhead rate for each company.
b. Determine the amount of overhead cost that would be applied to work in process for each company and compute the amount of overapplied or underapplied manufacturing overhead cost for each company.
c. Explain how closing the Manufacturing Overhead account would affect the Cost of Goods Sold account for eachcompany.

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Bush Hunt Actual machine hours Estimated machine hours Actual manufacturing overhead costs 19,500 20,000 $71,900 $159,000 Estimated manufacturing overhead costs 72,000 $160,000 12,300 12,000