Response to the following questions:
1. a. How is a predetermined factory overhead rate calculated?
b. Name three common bases used in calculating the rate.
2. a. What is (1) overapplied factory overhead and (2) underapplied factory overhead?
b. If the factory overhead account has a positive balance, was factory overhead underapplied or overapplied?
If possible, please give examples to better understand your answers.