Morrison, Inc., costs products using a normal costing system. The following data are available for last year:

Overhead is applied on the basis of direct labor hours.

Required:
1. What was the predetermined overhead rate?
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 decimal places)?

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Budgeted: Overhead $952,000 Machine hours 140,000 Direct labor hours 34,000 Actual: Overhead $950,000 Machine hours 137,000 Direct labor hours 33,100 Prime cost $3,500,000 Number of units 500,000