$($b$)$ Using the predetermined overhead rate per

machine hour, determine the manufacturing

overhead applied to Work$-$in$-$Process during

February.

$

$($c$)$ As of February $1,$ actual overhead was

underapplied by $$500,000.$ Determine the

cumulative amount of any overapplied or

underapplied overhead at the end of February.

$Customer Profitability Analysis

Gonalong, Inc. has $10$ customers that account for

all of its $$4,540,000$ of net income. Its activity$-$

based costing system is able to assign all costs,

except for $$650,000$ of general administrative

costs, to key activities incurred in connection with

serving its customers. A customer profitability

analysis based on activity costing produced the

following customer profits and losses: