Patton Company charges all of its departments and manufacturing cells for the use of engineering services. Budgeted engineering costs for the year are $160,000, and budgeted engineering hours are 5,000. By the end of the year, total actual engineering hours equal 5,060, and actual cost is $160,600.

Required:

1. Calculate the billing rate for engineering.

2. Ifthe small motor cell required 344 engineering hours during the year, what was the cell charged for engineering services?

3. Were the departments and cells (taken as a whole) over- or undercharged for the actual costs of engineering and by how much?