Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

IFRS edition volume 2

978-0470613474, 470613475, 978-0470616314

More Books

Students also viewed these Accounting questions

Question

What is topology? Explain with examples

Answered: 1 week ago

Question

What is linear transformation? Define with example

Answered: 1 week ago