Swenson Corporation has four independent manufacturing divisions. The following data apply to the divisions for the year just ended

Required:
1. For each of the four divisions, calculate:
a. Applied manufacturing overhead
b. Over- or under-applied manufacturing overhead
c. Cost of goods manufactured, assuming no work-in-process inventories
d. Average cost per unit produced
2. Interpretive Question: How would you recommend that the over- or under-applied manufacturing overhead be disposed of in each division?Why?

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Cook Fulton Pike Fayette $145,000 33,000 Direct materials costs Direct labor hours Direct labor costs Actual manufacturing overhead Machine hours worked. Number of units produced Predetermined overhead rate. $200,000 $350,000 $130,000 75,000 S120,000 $200,000 $150,000 $150,000 $125,000 $150,000 $80,000 $25,000 150,000 75% of direct labor costs 40,000 $3.30 per direct labor hour 4,250 50% of 11,000 $1.50 per machine hour direct mate- rials costs