Lopiano Company uses a predetermined overhead rate to apply overhead. Overhead is applied on the basis of direct labour hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided

Department 1 Department 2

Direct labour hours 100,000 20,000

Machine hours 10,000 30,000

Direct labour cost $750,000 $160,000

Overhead cost $410,000 $184,500

Actual results reported for all jobs during the year are as follows:

Department 1 Department 2

Direct labour hours 98,000 21,000

Machine hours 11,000 32,000

Direct labour cost $748,000 $168,000

Overhead cost $404,000 $195,000

The accounting records of the company show the following data for Job 713

Department 1 Department 2

Direct labour hours 125 50

Machine hours 10 210

Direct materials $1,580 $2,650

Direct labour cost $ 937 $400

Required:

1. Compute the predetermined overhead rate for each department.
2. Compute the applied overhead for all jobs during the year. What is the under or overapplied overhead for each department? For the firm?
3. Compute the total cost of job 713. If there are 50 units in Job 713, what is the unit cost?