Applying Manufacturing Overhead Swenson Corporation has four independent manufacturing divisions. The following data apply to the divisions for the year ended December 31, 2009:

Required:
1. For each of the four divisions, calculate:

a. Applied manufacturing overhead.

b. Over- or underapplied manufacturing overhead.

c. Cost of goods manufactured, assuming no work-in-process inventories.

d. Average cost per unit produced.
2. Interpretive Question: How would you recommend that the over- or underapplied manufacturing overhead be disposed of in each division? Why?

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Cook Fulton Pike Fayette Direct materials costs $250,000 $290,000 $130,000 $145,000 Direct labor hours 85,000 55,000 53,000 33,000 Direct labor costs $250,000 $125,000 $120,000 $74,000 Actual manufacturing overhead $184,900 $205,400 $140,000 $27,000 Machine hours worked 41,000 11,000 26,000 13,000 Number of units produced. 205,000 4,250 31,400 11,000 Predetermined overhead rate. 80% of 65% of $3.30 per $2.10 per direct direct direct machine labor materials labor hour costs costs hour