Maxiset Constructions Applies Overhead to Jobs Using Machine Hours At the End of the Year,it Was Determined That Overhead

question 18

Essay

Maxiset Constructions applies overhead to jobs using machine hours.The following data are available for the year: $\begin{array}{lr}\text { Estimated machine hours } & 200000 \\\text { Actual machine hours } & 150000 \\\text { Actual overhead } & \$ 750000\end{array}$
At the end of the year,it was determined that overhead was underapplied by $150 000.
Required:
A. What was the total applied overhead for the year?
B. What was the predetermined overhead rate?

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