Question
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:
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 | $285,600 | |
Machine hours | 84,000 | |
Direct labor hours | 10,200 | |
Actual: | ||
Overhead | $285,000 | |
Machine hours | 82,200 | |
Direct labor hours | 9,930 | |
Prime cost | $1,050,000 | |
Number of units | 150,000 |
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? = $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
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