In 2018, Lauren Company incurred actual overhead costs of $450,000. Overhead was allocated to jobs using a predetermined overhead rate of $40 per machine hour. During 2018, the company used 9,000 direct labor hours and 11,000 machine hours. Was overhead overapplied or underapplied for 2018 and by how much? overapplied by $90,000 underapplied by $90,000 overapplied by $10,000 underapplied by $10,000 Solution Underapplied by $10,000 Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Predetermined overhead rate per machine hour 40.00 Actual Machine hour 11,000.00 Applied overhead are calculated basis Predetermined rate * Actual hours In the question prdetermined overhead rate is given on the basis of machine hour So applied overhead would be calculated using actual machine hour Applied Overhead =40 * 11000 440,000.00 Actual Overhead 450,000.00 Since applied overhead is less than actual overhead it means company has applied less overhead which means overhead is underapplied Underapplied overhead = 450,000 - 440,000 10,000.00 I have tried my best to explain the answer...