Intercept, Inc. estimated that. For 2009, $761,250, of overhead costs would be incurred at 175,000 machine hours. During 2009, the company incurs 182,000 machine hours and has actual overhead costs of $782,630.
(a) What is Intercept's predetermined overhead rate per machine hour for 2009?
(b) How much overhead was applied to production in 2009?
(c) Is overhead underapplied of overapplied at the end of 2009? By what amount?
(d) What is the disposition of the underapplied or overapplied overhead determined in part (c)? How, it at all, will this disposition affect the income statement?