Objs. 1,2 Triple Play Sports manufactures baseball gloves. Information related to a recent production period is as follows:

1) uring ()etober, 2,000 glowes were produced.

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A. Using actual costing, what is the unit cost of one glove produced during October?
B. Using normal costing, with machine hours as the activity base, what is the unit cost of one glove produced during October?
C. If normal costing is used, was manufacturing overhead over- or underapplied during September? By how much?
D. What might have caused the amount of overhead applied to be different from the actual amount?
E. Why would managers at Triple Play Sports choose to use normal costing rather than actual costing?

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Estimated manufacturing overhead, 2004 $100,000 Estimated machine hours, 2004 4,000 Direct labor cost. October Direct materials cost, October Supervisor's salary, October Factory rent, October $5,000 $5,000 $4,000 $1,000 Factory utilities, October Indirect materials cost, October $1,000 $1,400 Machine hours worked, October 300