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Problem - Mifflin, inc., costs products using a normal costing system. The following data are available for last year Budgeted:
Overhead $728,000
Machine hours 140,000
Direct labor hours 26,000
Actual
Overhead $726,000
Machine hours 137,000
Direct labor hours 25,100
Prime cost 3,500,000
Number of units 500,000
Overhead is applied on the basis of direct labor hours.
1. What is the predetermined overhead rate
2. What is the applied overhead for last year
3. Was the overhead over-or under applied, and by how much
4. What was the total cost per unit produced? (carry our answer to four decimal places.)
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