The management of Chaloux Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity.The Corporation's controller has provided an example to illustrate how this new system would work.In this example, the allocation base is machine-hours. 
If the Corporation bases its predetermined overhead rate on capacity, by how much was manufacturing overhead underapplied or overapplied?
Definitions:
Patent Act
Legislation governing the granting of patents for inventions and the rights of patent holders.
Monopoly
The control of a particular market or trade by a single entity, eliminating competition.
Patent Holder
An individual or entity in possession of the rights granted by a patent, typically the inventor or their assignee.
Independent Right
A right or privilege that exists on its own and does not depend on another condition or obligation being met.
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