Xania Inc. uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine hours is used. Xania's plant manager has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Xania has the following data for its two departments for the coming year:

	Department A	Department B
Overhead costs (expected)	$750,000	$330,000
Normal activity (machine hours)	10,000	6,000

Required:

1. Compute a predetermined overhead rate for the plant as a whole based on machine hours.

$750,000+$330,333 =$1,080,000 10,000 mhr+6,000 mhr =16,000 mhr

$108,0000/16,000 mhr = $67.5per machine hour

2. Compute predetermined overhead rates for each department using machine hours. (Note:Carry your calculations out to the nearest dollar.)

Department A $750,000/10,00 mhr = $75per machine hour

Department B $330,000/ 6,000 mhr = $55per machine hour

3. Job 73 used 20 machine hours from Department A and 50 machine hours from Department B. Job 74 used 50 machine hours from Department A and 20 machine hours from Department B. Compute the overhead cost assigned to each job using the plantwide rate computed in Requirement 1. Repeat the computation using the departmental rates found in Requirement 2.

Job 73 Plantwide 70 mhr*$67.5 =$4,725	Job 73 Departmental 20 mhr*$75= $1,500 50 mhr*$55 =$2750 =$4250
Job 74 Plantwide 70 mhr*$67.5 =$4,725	Job 74 Departmental 50 mhr*$75 =$3750 20 mhr*$55 =$1100 =$4850

4. Using a Plantwide, if actual machine hours for the year were 17,000 hours and actual overhead costs were $1,100,000, how much was overhead under- or over-applied for the year?

please just answer just # 4