6:26 AM Tue Sep 12 189 Exercises Exercise 4-11 Predetermined Overhead Rate, Applied Overhead, Unit Cost OBJECTIVE 1 Gomez, Inc., costs products using a normal costing system. The following data are available for last year: Budgeted: Overhead Machine hours Direct labor hours Actual: Overhead Machine hours Direct labor hours Prime cost Number of units $285,600 84,000 10,200 $285,000 82.200 9,930 $1,050,000 150,000 100% > 6:27 AM Tue Sep 12 Overhead is applied on the basis of direct labor hours. REQUIRED: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? SHOW ANSWER 4. What was the total cost per unit produced (carry your answer to four significant digits)? SHOW ANSWER Exercise 4-12 Predetermined Overhead Rate, Application of Overhead OBJECTIVE 1 Findley Company and Lemon Company both use predetermined overhead rates to apply manufacturing overhead to production. Findley's is based on machine hours, and Lemon's is based on materials cost. Budgeted production and 100% >