6 BUSI1093-E1 16. Leicester Ltd uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. On May 1, the estimates for the month were: Manufacturing overhead Machine hours During May, the actual results were: Manufacturing overhead Machine hours 20,000 10,000 21,050 12,000 The cost records for May will show: (a) (b) (C) (d) Overapplied overhead of 2,950. Underapplied overhead of 2,950. Overapplied overhead of 2,000. Underapplied overhead of 2,000. 17. The monthly production figures are shown below for Z Ltd: Units Total Cost 15,000 25,000 1,000 2,000 3,000 4,000 35,000 45,000 Using the High Low Method, what is the variable cost per unit? (a) 15 (b) 20 C 10 (d) 25 18. Within the relevant range in CVP analysis: (a) (b) (C) (d) Variable cost per unit decreases as production increases. Fixed cost per unit decreases as production increases. Fixed cost per unit does not change. Variable cost per unit increases as production decreases Applies to questions 19 and 20: Blue Ltd applies manufacturing overhead on the basis of labour hours. Budgeted manufacturing overhead was set at 52,000 at the start of the year. The company's predetermined overhead rate was set at 13.00 per labour hour, also at the start of the year. Actual manufacturing overhead for the year amounted to 51,788 and actual labour hours worked were 3,850