Peter & Bondra are production managers at the Peter Bondra Pty Ltd trailer factory in Digby, NS, Canada. Both managers use predetermined overhead application rates to apply manufacturing overhead to their production. To calculate their application rates Peter uses material cost while Bondra uses direct labour cost. ACTUAL production and production information Peter Manufacturing overhead $237,500 Units 9,000 Machine hours 7,500 Material cost Direct labour hours 6,000 Direct labour cost $245,500 Bondra $211,500 6,000 9,000 $15,500 9,000 $212,500 $14,500 BUDGETED production and cost data Peter Manufacturing overhead $236,500 Units 8,500 Machine hours 9,000 Material cost $13,500 Direct labour hours Direct labour cost $210,500 Bondra $201,500 9,500 5,000 $15,500 6,500 $211,000 6,000 1. 2. 3 4. 5. 6. 7. 8. REQUIRED: Compute Peter's predetermined overhead application rate. Compute Bondra's predetermined overhead application rate. Compute Peter's overhead applied. Compute Bondra's overhead applied. Compute Peter's over (under) application of overhead. Compute Bondra's over (under) application of overhead. Compute Peter's cost per unit of production. Use actual labour & material and applied overhead. Compute Peter's cost per unit of production. Use actual labour & material and applied overhead. 16.38 1.00 221120.69 210007.06 - 15379.31 8507.06 52.37 45.95