Pinnini Co. uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Last year, Pinnini Company incurred $300,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was underapplied $15,000 for the year. If the predetermined overhead rate was $5.00 per direct labor hour, how many direct hours did the company work during the year?

Data for the next 2 questions: Cosgrove Company manufactures two products, Product K-7 and Product L-15. Companys selling price for each product is based on manufacturing costs of each product. Specifically, the formula for selling price is as follows: Cost + 150% of Cost

Product L-15 is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product K-7. Product L-15 is the more complex of the two products, requiring 2 hours of direct labor time per unit to manufacture compared to 1 hour of direct labor time for Product K-7. Currently factory overhead is applied to the products using a plant-wide rate on the basis of direct labor hours. The company estimated it would incur $550,800 in manufacturing overhead costs and 60,000 direct labor hours to produce 40,000 units of Product K- 7 and 10,000 units of Product L-15 during the current year. Unit costs for materials and labor are as follows:

Product K-7 Product L-15

Direct material $12 $25

Direct labor $8 $16

Compute cost of production per unit of Product K-7 under current plant-wide overhead allocation. Compute cost of production per unit of Product L-15 under current plant-wide overhead allocation