1) If one unit of Product Z2 used $2.00 of direct materials and $3.40 of direct labor, sold for $11.00, and was assigned overhead at the rate of 25% of direct labor costs, how much gross profit was realized from this sale? (Round your intermediate calculations and final answer to two decimal places.)

2) Why do companies need cost information on the products they are producing? Name one of those reasons

3)If a company has an underapplied OH situation, is the COGS too high or too low? At the end of the year, will you debit or credit COGS?