The management of Chaloux Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity.The company'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 company bases its predetermined overhead rate on capacity,by how much was manufacturing overhead underapplied or overapplied?
Definitions:
Neural Crest Cells
Multipotent cells that originate from the embryonic ectoderm and migrate to form various structures including peripheral nerves and melanocytes.
Cranium
The bony framework that protects the brain in vertebrates.
Vertebrate Adaptations
Modifications or changes in structures, functions, or behaviors in vertebrates that enhance survival and reproduction in their environment.
Terrestrial Life
Life forms that live, grow, and thrive on land rather than in water or air.
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