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 Machine hours $288,300 82,000 9,300 Direct labor hours Actual: Overhead Machine hours Direct labor hours $287,700 80,200 9,000 $801,000 120,000 Prime cost Number of units Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 31 per direct labor hour 2. What was the applied overhead for last year? 31.9 x 3. Was overhead over- or underapplied, and by how much? Overapplied overhead X 31.9 X = 4. What was the total cost per unit produced? (Carry your answer to four significant digits.) 9.0725 X per unit Feedback Check My Work 1. Predetermined OH rate = Budgeted annual overhead: Budgeted annual driver level 2. Applied OH = Overhead rate x Actual driver usage 3. Calculate over- or underapplied by subtracting Applied OH from Actual OH 4. Unit Cost = (Prime cost + OH Cost) : total units