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

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

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

Predetermined FOH rate $$,20\mathrm{.}83$ per $MH$

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

Predetermined FOH rate $$,36$ per MH

d$.$ During the year, the firm records $110,000$ machine hours and $$8,130,000$ of overhead costs.

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

Applied VOH

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

Applied FOH $$0$

$(3)$ 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.

$$,0$

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

Applied FOH $$0$

$(5)$ 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.

$ High$-$low method; flexible budget

Tijuana Tile has gathered the following information on its utility cost for the past six months.

a$.$ Using the high$-$low method, determine the cost formula for utility cost.

$y=$$$0,$ per $MH$

b$.$ Prepare a flexible budget with separate variable and fixed categories for utility cost at $1,325,1,500,$ and $1,675$ machine hours. Absorption vs$.$ variable costing

Reese's Tot Toy Boxes uses variable costing to manage its internal operations.

The following data relate to the company's first year of operation, when $15,000$ units were produced and $12,600$ units were sold.

Total Fixed Costs

How much higher $($or lower$)$ would the company's first$-$year net income have been if absorption costing had been used rather than variable costing?