Ripley, Inc., costs products using a normal costing system. The following data are available for last year:
Budgeted:
Overhead ........ $285,600
Machine hours ........ 84,000
Direct labor hours ..... 10,200
Actual:
Overhead......... $285,000
Machine hours ........ 82,200
Direct labor hours ...... 9,930
Prime cost ........ $1,050,000
Number 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 significant digits)?