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I just need to see if this is correct. Predetermined Overhead Rate, Applied Overhead, Unit Cost Gomez, Inc., costs products using a normal costing system.
I just need to see if this is correct.
Predetermined Overhead Rate, Applied Overhead, Unit Cost Gomez, Inc., costs products using a normal costing system. The following data are available for last year: Budgeted: Overhead $310,400 Machine hours 84,000 Direct labor hours 9,700 Actual: Overhead $309,600 Machine hours 81,900 Direct labor hours 9,310 Prime cost $402,080 Number of units 100,000 Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 32 per direct labor hour 2. What was the applied overhead for last year? 297,920 3. Was overhead over- or underapplied, and by how much? Underapplied overhead 12,480 4. What was the total cost per unit produced? (Carry your answer to four significant digits.) 7.000 per unit Step by Step Solution
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