Question

Predetermined Overhead Rate, Applied Overhead, Unit Cost Ripley, Inc., costs products using a normal costing system....

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      $262,600
      Machine hours      86,000
      Direct labor hours      10,100
Actual:
      Overhead      $262,200
      Machine hours      83,900
      Direct labor hours       9,830
      Prime cost      $1,544,420
      Number of units      180,000

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

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