Nabors Company produces two types of stereo units: deluxe and regular. For the most recent year, Nabors reports the following data:
• Budgeted overhead $180,000
• Expected activity (in direct labor hours) 50,000
• Actual activity (in direct labor hours) 51,000
• Actual overhead $200,000
|
Deluxe
|
Regular
|
|
Units produced
|
5,000
|
50,000
|
|
Prime costs
|
$40,000
|
$300,000
|
|
Direct labor hours
|
5,000
|
46,000
|
Required:
(1) Calculate a predetermined plantwide overhead rate based on direct labor hours.
(2) What is the applied overhead?
(3) What is the under - or - overapplied overhead?
(4) Calculate the unit cost of each stereo unit.