Applied Overhead and Unit Overhead Cost: Plantwide Rates

Seco, Inc., produces two types of clothes dryers: deluxe and regular. Seco 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 $$2,268,000$

Expected activity $54,000$

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

Deluxe dryer $15,000$

Regular dryer $39,000$

Units produced:

Deluxe dryer $30,000$

Regular dryer $195,000$

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

Deluxe $fill in the blank $2$

Regular $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

Deluxe $fill in the blank $4$ per unit

Regular $fill in the blank $5$ per unit

$3.$ What if the deluxe product used $30,000$ hours $($to produce $30,000$ units$)$ instead of $15,000$ hours $($total expected hours remain the same$)?$ Calculate the effect on the profitability of this product line if all $30,000$ units are sold.

Profits would by $fill in the blank $7$