Alberton Electronics makes inexpensive GPS navigation devices and uses a normal cost system that applies overhead based on machine hours. The following current year budgeted data are available:

Variable factory overhead at $100,000$ machine hours$$1,250,000$Variable factory overhead at $150,000$ machine hours$1,875,000$Fixed factory overhead at all levels between $10,000$ and $180,000$ machine hours$1,440,000$

Practical capacity is $180,000$ machine hours; expected capacity is two$-$thirds of practical.

a$.$ What is Alberton Electronics$$ predetermined VOH rate?

Predetermined VOH rateAnswer $1$per MH

b$.$ What is the predetermined FOH rate using practical capacity?

Predetermined FOH rateAnswer $2$per MH

c$.$ What is the predetermined FOH rate using expected capacity?

Predetermined FOH rateAnswer $3$per MH

d$.$ During the year, the firm records $110,000$ machine hours and $$2,710,000$ of overhead costs.

$(1)$ How much variable overhead is applied?

Applied VOHAnswer $4$

$(2)$ How much fixed overhead is applied using the rate found in $($b$)?$

Applied FOHAnswer $5$

$(3)$ Calculate the total under$-$ or overapplied overhead for the year using the rate found in $($b$).$

Note: Do not use a negative sign with your answer.

Answer $6$Answer $7$OverappliedUnderappliedNeither over$-$ or underapplied

$(4)$ How much fixed overhead is applied using the rate found in $($c$)?$

Applied FOHAnswer $8$

$(5)$ Calculate the total under$-$ or overapplied overhead for the year using the rate found in $($c$).$

Note: Do not use a negative sign with your answer.

Answer $9$Answer $10$OverappliedUnderappliedNeither over$-$ or underapplied