The Tomlin Company forecasts that the total overhead for the current year will be $15,000,000 and that the total machine hour will be 200,000 hours. Year to date, the actual overhead is $15,000,000 and the actual machine hours are 220,000 hours. If the Tomlin company uses a predetermined overhead rate based on machine hours of applying overhead, as of this point in time (year to date) the overhead is over/under applied by: a. $1,000,000 over b. $1,000,000 under c. $500,00 over d. 500,000 under

Suppose that a manufacturer plans to produce 78,000 units of product duringa year. A lot of size L, to be determined, is to be made periodically, andevery time a lot is made, it is necessary to set up the appropriate machineryand other production facilities before production starts. The set up cost is thena fixed cost incurred for each lot produced and it is determined as $ 200. Whenproduction commences , the cost of making a unit is constant at $ 7.5 per unit.Inventory cost is to be determined on the basis that it costs $ 0.50 per year tocarry one unit in inventory. Also find how many lots the manufacturerwould make per year and each lot would be produced in how manydays ?.

The Maria Company estimated its factory overhead of the next period at P160,000. It is estimated that 40,000 units will be produced at a materials cost of P200,000. Production will require 40,000 man-hours at an estimated wage cost of P80,000. The machines will run about 25,000 hours. How much is the Machine Depreciation Cost Driver rate?

At the begging of the year, Crane Company estimates annual overhead costs to be 2400000 and that 100000 machine hours will be operated. Using machine hours as a base, the amount of overhead apllied during the year if actual machine hours for the year was 115000 hours is?