Robolamo manufactures three different models of robot lawn mowers (Lawn Fighter, Lawn Warrior, and Lawn Lord). All lawn-mowing robots are high quality products and equipped with important security features. Various programming possibilities and smart technological features make the automatic lawn mowers reliable assistants in the garden. For Robolamos customers exhausting lawn-mowing belongs to the past. The three models differ in their programming possibilities and technological features like remote control via Smartphone-Apps. Robolamo uses an absorption costing system that absorbs manufacturing overhead to the three models based on direct labor hours. The single plantwide manufacturing overhead rate is predetermined before the beginning of the fiscal year using a flexible manufacturing overhead budget. Variable manufacturing overhead is budgeted to be 9.45 per direct labor hour, and fixed manufacturing overhead is budgeted to be 4,180,000 . Direct labor is budgeted at 25.00 per direct labor hour. The following table summarizes the budgeted and actual results of operation for the year (see attached picture)

1. Calculate the firmwide overhead rate per direct labor (DL) hour for the year (round to four decimals). The overhead rate is calculated before the fiscal year begins.
2. A batch of 845 units of model Lawn Fighter is produced using 305 direct labor hours. How much overhead is absorbed by this batch of 845 models Lawn Fighter?
3. Actual overhead incurred during the year was 5,450,500 . Calculate the amount of over- or under absorbed overhead for the year.
4. Robolamo writes off any over-/under absorbed overhead to cost of goods sol What is the effect on earnings of writing off the over-/under absorbed overhead calculated in part (c) on net income? In other words, does net income increase or decrease relative to what net income was prior to the write-off of the over-/under absorbed overhead calculated in part (c)?

Budgeted wholesale price per mower () Budgeted production (units) Budgeted direct materials per mower () Budgeted direct labor hours per mower Budgeted DL cost per mower (@ 25.00 per DL hour) LawnFighter 1,790.00 19,900 259.00 7.45 186.25 Models LawnWarrior 2,190.00 14,900 319.00 8.45 211.25 LawnLord 3,090.00 10,900 488.00 10.45 261.25 Actual number of units produced Actual DL hours per unit 17,745 7.55 14,700 8.65 11,100 10.35