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Predetermined Overhead Rate, Applied Overhead, Unit Cost
Ripley, Inc., costs products using a normal costing system. The following data are available for last year:
| Budgeted: |
| Overhead | | $248,400 |
| Machine hours | | 81,000 |
| Direct labor hours | | 9,200 |
| Actual: |
| Overhead | | $247,900 |
| Machine hours | | 78,900 |
| Direct labor hours | | 8,940 |
| Prime cost | | $1,198,620 |
| Number of units | | 160,000 |
Overhead is applied on the basis of direct labor hours.
Required:
1. What was the predetermined overhead rate? $ per direct labor hour
2. What was the applied overhead for last year? $
3. Was overhead over- or underapplied, and by how much? = $
4. What was the total cost per unit produced? (Carry your answer to four significant digits.) $ per unit
Answer & Explanation
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