Pinegor Corporation has four independent manufacturing divisions. The following data apply to the divisions for the year ended December 31, 2000:

\begin{tabular}{|c|c|c|c|c|}

\hline & A & B & C & D \\

\hline Direct materials costs & $\$ 120,000$ & $\$ 140,000$ & $\$ 80,000$ & $\$ 65,000$ \\

\hline Direct labor hours. & 40,000 & 30,000 & 24,000 & 14,000 \\

\hline Direct labor costs . . . . . . . . . & $\$ 110,000$ & $\$ 65,000$ & $\$ 70,000$ & $\$ 42,000$ \\

\hline Actual manufacturing overhead & $\$ 120,000$ & $\$ 60,000$ & $\$ 70,000$ & $\$ 16,500$ \\

\hline Machine hours worked . . . . . . . . . . . . . . . & 20,000 & 6,000 & 14,000 & 8,000 \\

\hline Number of units produced & 100,000 & 2,000 & 15,000 & 5,000 \\

\hline Predetermined overhead rate & \begin{tabular}{l}

$90 \%$ of \\

direct \\

labor \\

costs

\end{tabular} & \begin{tabular}{l}

$57 \%$ of \\

direct \\

materials \\

costs

\end{tabular} & \begin{tabular}{l}

$\$ 1.25$ per \\

direct \\

labor \\

hour

\end{tabular} & \begin{tabular}{l}

$\$ 2$ per \\

machine \\

hour

\end{tabular} \\

\hline

\end{tabular}

1. For each of the four divisions, calculate:

a. Applied manufacturing overhead.

b. Over- or underapplied manufacturing overhead

c. Cost of goods manufactured, assuming no work-in-process inventories

d. Average cost per unit produced.
2. Interpretive Question: How would you recommend that the over-or underapplied manufacturing overhead be disposed of in each division? Why?