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Gomez, Inc., costs products using a normal costing system. The following data are available for last year: Budgeted: Overhead $236,600 Machine hours 84,000 Direct labor
Gomez, Inc., costs products using a normal costing system. The following data are available for last year: Budgeted: Overhead $236,600 Machine hours 84,000 Direct labor hours 9,100 Actual: Overhead $235,800 Machine hours 81,800 Direct labor hours 8,900 Prime cost $668,600 Number of units 100,000 Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? per direct labor hour 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced? (Carry your answer to four significant digits.) per unit Overapplied overhead Underapplied overhead
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