Jax company costs products using normal costing. For last year the following data are available. Budgeted Data: Overhead $952,000 Machine hours (MH) 140,000 Direct labor hours 34,000 Actual Data Overhead $950,000 Machine hours (MH) 137,000 Direct labor hours 33,100 Prime cost $3,500,000 Number of units 500,000 Overhead is applied based on direct labor hours.

Required:

(1) What was the pre-determined overhead rate?

(2) What was the applied overhead for last year?

(3) Was the overhead over- or underapplied, and by how much?

(4) What was the normal cost per unit produced? (to four significant digits).