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 $285,600Machine hours 84,000Direct labor hours 10,200Actual:Overhead $285,000Machine hours 82,200Direct labor hours 9,930Prime cost $1,050,000Number of units 150,000 Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate?2. What was the applied overhead for last year?3. Was overhead over- or under applied, and by how much?4. What was the total cost per unit produced (carry your answer to four signi?cant digits)?
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