Transcribed Image Text
In: AccountingMedusa Products uses a job-order costing system. Overhead costsare applied to jobs on the basis...Medusa Products uses a job-order costing system. Overhead costsare applied to jobs on the basis of machine-hours. At the beginningof the year, management estimated that the company would work88,800 machine-hours and incur $346,320 in manufacturing overheadcosts for the year. Required:1. Compute the company's predetermined overhead rate.(Round your answer to 2 decimal places.)Predetermined overhead rate...............................Per MH2. Assume that during the year the company actually worked only81,900 machine-hours and incurred $340,000 of manufacturingoverhead costs. Compute the amount of underapplied or overappliedoverhead for the year. (Round your intermediate calculationto 2 decimal places.)