Applied overhead in a bank. On January 1, a bank estimated its production capacity to be 800 million units and used that estimate to compute its predetermined overhead rate of $0.01 per transaction...

Applied overhead in a bank. On January 1, a bank estimated its production capacity to be 800 million units and used that estimate to compute its predetermined overhead rate of $0.01 per transaction (one unit ¼ one transaction). The units produced for the four quarters follow:

a. Compute the amount of total overhead applied under normal costing for each quarter.

b. What was the estimated overhead for the year for the predicted capacity of 800 million units?