Von Maur and Company uses a predetermined overhead rate of $5 per machine hour. A review of

Question:

Von Maur and Company uses a predetermined overhead rate of $5 per machine hour. A review of the company’s accounting records shows that it budgeted $25,000 for overhead, and that actual overhead was $26,000. The firm also underapplied manufacturing overhead by $6,000.

Required:
What were Von Maur’s budgeted and actual machine hours?