Ripley, Inc., costs products using a normal costing system. The following data are available for last year:

Overhead is applied on the basis of direct labor hours.

Required:

1. What was the predetermined overhead rate?
$________ per direct labor hour

2. What was the applied overhead for last year?
$_________

3. Was overhead over- or underapplied, and by how much?
- Select your answer -Overapplied overheadUnderapplied overheadItem 3 = $________

4. What was the total cost per unit produced (carry your answer to four significant digits)?
$_________ per unit
 

Budgeted: Overhead $285,600 Machine hours 84,000 10,200 Direct labor hours Actual: Overhead $285,000 Machine hours 82,200 9,930 $1,050,000 150,000 Direct labor hours Prime cost Number of units