1. Colbey Corporation estimates factory overhead of $276.000 for the next year.

It is estimated that
47.500 units will be produced at a materials cost of $400.000. Conversion will require 28.750 direct
labor hours at a cost of $9.6 per hour, with 23.000 machine hours.
Required; Compute the factory overhead rate that may be used in applying factory overhead to
production on each of the following bases:
a. Units of production
b. Materials Cost
c. Direct labor hours
d. Direct labor cost
e. Machine hours
2. Carlo company budgeted factory overhead at $255.000 for the period for Department A based on
budgeted volume of 100.000 machine hours. At the end of the period the actual factory overhead was
$270.000 and actual machine hours were 105.000.
Required : calculate the over-or underapplied factory overhead for the period.
3. Lancaster Corporations assemble and sells electric mixers. All parts are purchased and the cost of the
parts per mixer totals $40. Labor is paid on the basis of $32 per mixer assembled. The unit of
productions base for applying overhead is used. Estimated factory overhead for the coming period,
based on a production of 30.000 mixers is as follows;
Indirect materials
Indirect Labor
Light and Power
Depreciation
Miscellaneous

$220.000
$240.000
$ 30.000
$ 25.000
$ 55.000

During the period, 29.000 mixers were assembled and actual factory overhead was $559.600.
Required;
1. Determine the amount of over- or underapplied factory overhead
2. Determine cost per unit of mixer.