Applied Overhead and Unit Overhead Cost: Plantwide Rates

Imprimo, Inc., produces two types of ink$-$jet printers: business and home. Imprimo uses a plantwide rate based on direct labor hours to assign its overhead costs. The company has the following estimated and actual data for the coming year:

Estimated overhead $$2,024,000$

Expected activity $46,000$

Actual activity $($direct labor hours$)$:

Business printer $11,000$

Home printer $35,000$

Units produced:

Business printer $22,000$

Home printer $175,000$

Required:

$1.$ Calculate the predetermined plantwide overhead rate, using direct labor hours.

$fill in the blank $1$

per hour

Calculate the applied overhead for each product, using direct labor hours.

Applied overhead

Business $fill in the blank $2$

Home $fill in the blank $3$

$2.$ Calculate the overhead cost per unit for each product. If required, round your answers to the nearest cent.

Overhead Cost

Business $fill in the blank $4$

per unit

Home $fill in the blank $5$

per unit

$3.$ What if the business printer used $22,000$ hours $($to produce $22,000$ units$)$ instead of $11,000$ hours $($total expected hours remain the same$)?$ Calculate the effect on the profitability of this product line if all $22,000$ units are sold.

Profits would

by $fill in the blank $7$