Estimated Annual Overhead is $1,000,000
Actual overhead was $980,000
Estimated annual machine hours were 400,000
Actual machine hours were 402,000

Calculate the following:
Predetermined overhead rate per machine hour (POHR)
Overhead Applied to Production
Amount of over/underapplied overhead


$2.50 per machine hour, Applied $1,005,000, $25,000 underapplied

$2.50 per machine hour, Applied $1,000,000 $5,000 underapplied

$2.45 per machine hour, Applied $984,900, $4,900 overapplied

$2.50 per machine hour, Applied $1,005,000, $25,000 overapplied