Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $325,000 and machine hours to be 25,000. Actual manufacturing overhead and machine hours were $372,000 and 26,000, respectively.

1. Compute the predetermined overhead rate per machine hour?

2. Compute applied manufacturing overhead?

3. Compute over- or underapplied manufacturing overhead.

Could you please post the answer?

What speakers will pair well with the cambridge xax35 amp?

To calculate the answers to these questions, we need to follow these steps:

1. Compute the predetermined overhead rate per machine hour:
The predetermined overhead rate is calculated by dividing the estimated total overhead cost by the estimated machine hours. In this case, it would be:
Predetermined overhead rate = Estimated total overhead cost / Estimated machine hours
Predetermined overhead rate = $325,000 / 25,000 machine hours

To get the answer, simply divide $325,000 by 25,000:
Predetermined overhead rate = $13 per machine hour

2. Compute applied manufacturing overhead:
Applied manufacturing overhead is calculated by multiplying the actual machine hours by the predetermined overhead rate. In this case, it would be:
Applied manufacturing overhead = Actual machine hours * Predetermined overhead rate
Applied manufacturing overhead = 26,000 machine hours * $13 per machine hour

To get the answer, simply multiply 26,000 by $13:
Applied manufacturing overhead = $338,000

3. Compute over- or underapplied manufacturing overhead:
To determine whether the manufacturing overhead was over- or underapplied, we compare the applied manufacturing overhead with the actual manufacturing overhead.
Over- or underapplied manufacturing overhead = Actual manufacturing overhead - Applied manufacturing overhead
Over- or underapplied manufacturing overhead = $372,000 - $338,000

To get the answer, simply subtract $338,000 from $372,000:
Over- or underapplied manufacturing overhead = $34,000

In this case, the manufacturing overhead is underapplied by $34,000.