Question - Apollo Manufacturing produces a basic cellphone as a contract manufacturer. Overhead is applied at a rate of 130% of direct labor cost. The direct labor rate is 533 per hour. In March, there was no beginning or ending work in process, and the assembly department produced 62,000 finished phones. The materials cost was 5295,000, and there were 12,750 direct labor hours worked during the month. Actual overhead spending was 5549,100 during the month.
Calculate the total cost of production in the month of March and the cost per unit for each phone produced. Determine if overhead was overapplied or underapplied and by what amount.