Answered step by step
Verified Expert Solution
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 $316,800 Machine hours 81,000 Direct labor hours 9,900 Actual: Overhead $316,000 Machine hours 79,300 Direct labor hours 9,530 Prime cost $895,040 Number of units 120,000 Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? per direct labor hour 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? Underapplied overhead 4. What was the total cost per unit produced? (Carry your answer to four significant digits.) per unit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started