Advanced Aeronautics Co. uses a budgeted overhead rate in applying overhead to individual job orders on a machinehour basis for Department A and on a direct-labour-hour basis for Department B.

At the beginning of 2006, the company’s management made the following budget predictions: 

Find the underapplied or overapplied overhead for each department and for the factory as a whole.

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DEPT. A DEPT. B Direct labour cost $1,500,000 $1,200,000 Factory overhead 2,170,000 1,000,000 Direct labour hours 90,000 125,000 Machine hours 350,000 20,000 Cost records of recent months show the following accumulations for Job Order No. M89: DEPT. A DEPT. B Material placed in production 12,000 32,000 Direct labour cost $10,800 $10,000 Direct labour hours 900 1,250 3,500 150 Machine hours 1. What is the budgeted overhead rate that should be applied in Department A? In Department B? 2. What is the total overhead cost of Job Order No. M89? 3. If Job Order No. M89 consists of 200 units of product, what is the unit cost of this job? 4. At the end of 2006, actual results for the year's operations were as follows: