Collins Company uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The following information applies to the company for the current year: The manufacturing overhead cost for the current year will be: Select one: a. $17,000 overapplied b. $17,000 underapplied c. $55,000 overapplied d. $55,000 underapplied.

Suppose the number of equipment sales and service contracts that a store sold during the last six (6) months for treadmills and exercise bikes was as follows: treadmill exercise bike total sold 185 123 service contracts 67 55 the store can only sell a service contract on a new piece of equipment. of the 185 treadmills sold, 67 included a service contract and 118 did not.