Predetermined Overhead Rate, Applied Overhead, Unit Cost

Ripley, Inc., costs products using a normal costing system. The following data are available for last year:

Budgeted:
Overhead		$247,500
Machine hours		85,000
Direct labor hours		9,900
Actual:
Overhead		$246,800
Machine hours		83,300
Direct labor hours		9,580
Prime cost		$740,500
Number of units		140,000

Overhead is applied on the basis of direct labor hours.

Required:

1. What was the predetermined overhead rate? $fill in the blank 1 per direct labor hour

2. What was the applied overhead for last year? $fill in the blank 2

3. Was overhead over- or underapplied, and by how much?

Overapplied overheadUnderapplied overhead

= $fill in the blank 4

4. What was the total cost per unit produced? (Carry your answer to four significant digits.) $fill in the blank 5 per unit