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

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

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