Waterway Industries applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:Estimated annual overhead cost $1,200,000Actual annual overhead cost $1,150,000Estimated machine hours 300,000Actual machine hours 280,000Question 5 options:$1,120,000 applied and $30,000 underapplied.$1,120,000 applied and $30,000 overapplied.$1,150,000 applied and neither under- nor overapplied.$1,200,000 applied and $30,000 overapplied.

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?