Zander, Inc. costs products using a normal costing system. The following data are availablefor last year;

Overhead is applied on the basis of direct labor hours.
Required:
1. What is the predetermined overhead rate?
2. What is the applied overhead for last year?
3. Was overhead over- or underapplied, and by how much?
4. What is the normal cost per unit produced?

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Budgeted: Overhead $1,050,000 Machine hours 125,000 Direct labor hours 30,000 Actual: Overhead. $1,160,000 Machine hours 122,030 Direct labor hours 29,600 Prime cost $3,500,000 Number of units 500,000