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Ripley Inc

Price: $2.50


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 underapplied, and by how much?
4.What was the total cost per unit produced (carry your answer to four significant digits)?

2 comments:

  1. Never mind I got it, overhead /labor hours 285000/9930=28.70, now to get the under or over applied amount, subtract the actual overhead from the budgeted and that is the amount 285600-285000=600

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