1.

The following data are given for a period:

Estimated (budgeted) Manufacturing overhead cost $60,000

Actual Manufacturing overhead cost $64,000

Predetermined overhead rate: $20 per machine hour

Estimated Activity base 3,000 machine hours

Actual Activity base 3,300 machine hours

Manufacturing overhead is:

		over-applied by $6,000.
		over-applied by $2,000.
		under-applied by $2,000.
		over-applied by $4,000.
		under-applied by $4,000.

2.

Salem Company applies overhead on the basis of direct labor hours. Its predetermined overhead rate is $70 per direct labor hour.

The following additional information is given regarding a given product:

1. Direct material cost per unit of product is $100.
2. Direct labor cost per unit of product is $60.
3. 2 direct labor hours are needed to make one unit of product.

What is the cost per unit (unit product cost) for the product?

		$360
		$370
		$280
		$300
		$320