1. CHAMPION Manufacturing Company uses a normal costing system. The activity base for all overhead costs is direct labor hours. All goods which were produced during the period were completed and sold during the period. Costs of manufacturing and non-manufacturing for the current period are: Fixed selling expenses Number of units produced. Administrative expenses Direct labor Direct materials Direct labor hours Indirect labor Indirect materials Other factory overhead Variable selling expenses Required: Estimated $200,000 1,000 $500,000 $128,000 $125,000 3,000 $130,000 $200,000 $100,000 $140,000 a) Calculate POR, b) Calculate Applied Manufacturing overhead (MOH), Calculate the cost of 1 unit of the product (cost/unit), d) Calculate Over/underapplied MOH c) Actual 250,000 1,800 500,000 240,000 120,000 5,000 135,000 110,000 350,000 121,000

1. CHAMPION Manufacturing Company uses a normal costing system. The activity base for all overhead costs is direct labor hours. All goods which were produced during the period were completed and sold during the period. Costs of manufacturing and non-manufacturing for the current period are: Required: a) Calculate POR, b) Calculate Applied Manufacturing overhead (MOH), c) Calculate the cost of 1 unit of the product (cost/unit), d) Calculate Overunderapplied MOH 1. CHAMPION Manufacturing Company uses a normal costing system. The activity base for all overhead costs is direct labor hours. All goods which were produced during the period were completed and sold during the period. Costs of manufacturing and non-manufacturing for the current period are: Required: a) Calculate POR, b) Calculate Applied Manufacturing overhead (MOH), c) Calculate the cost of 1 unit of the product (cost/unit), d) Calculate Overunderapplied MOH