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Calculate the under- or overapplied factory overhead.

Factory overhead for the Praeger Company has been estimated as follows: (10 points)Fixed overhead$122,500Variable overhead$90,000Budgeted direct labor hours42,500Production for the month was 90 percent of the budget, and actual factory overhead totaled $175,000.Calculate:a.The predetermined factory overhead rate.b.The under- or overapplied factory overhead.

Solution:

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