b) When setting its predetermined overhead application rate, Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours.

Required:

i) Determine the predetermined overhead rate. (1.5 marks)

ii) What is the overhead applied during the year? (1.5 marks)

iii) Determine the under- or overapplied overhead. (2 marks)