Developing and Using a Predetermined Overhead Rate

Assume that the following predictions were made for last year for one of the plants of Milliken & Company:

Total manufacturing overhead for the year$ $15,000,000$Total machine hours for the year$1,200,000$

Actual results for February were as follows:

Manufacturing overhead$ $1,238,500$Machine hours$98,500$

$($a$)$ Determine the predetermined overhead rate per machine hour. $($Enter$$answer using two decimal places.$)$

$Answer $1$

$($b$)$ Using the predetermined overhead rate per machine hour, determine the manufacturing overhead applied to Work$-$in$-$Process during February.

$Answer $2$

$($c$)$ As of February $1,$ actual overhead was overapplied by $$35,000.$ Determine the cumulative amount of any overapplied or underapplied overhead at the end of February.

$Answer $3$