<p>PROBLEM 13-A1______</p><p>Donald Aeronautics Company uses a budgeted overhead rate in applying overhead to products on a machine-hour basis for Department A and on a direct-labor-hour basis for Department B. At the beginning of 20X1, the company’s management made the following budget predictions:</p><p>Department A Department B Direct-labor cost $1,500,000 $1,200,000 Factory overhead $2,170,000 $1,000,000 Direct-labor hours 90,000 125,000 Machine hours 350,000 20,000</p><p>Cost records of recent months show the following accumulations for product M89:</p><p>Department A Department B Material placed in production $12,000 $32,000 Direct-labor cost $10,800 $10,000 Direct-labor hours 900 1,250 Machine hours 3,500 150</p><p>Required:</p><p>1. What is the budgeted overhead rate that should be applied in Department A? In Department B?</p><p>2. What is the total overhead cost of product M89?</p><p>3. If 200 units of product M89 are produced, what is their unit cost?</p><p>4. At the end of 20X1, actual results for the year’s operations were as follows:</p><p>Department A Department B Actual overhead costs incurred $1,600,000 $1,200,000 Actual direct-labor hours 80,000 120,000 Actual machine hours 300,000 25,000</p><p>Find the underapplied or overapplied overhead for each department and for the factory as a whole.</p><p>Instructions:</p><p>1. Review the printed template called Problem 13-A1 that follows these instructions. In some problems, some of the problem data have been entered for you in the data input section of the spreadsheet. PROBLEM 13-A1 Continued</p><p>2. There are 11 FORMULAS in the template that you need to provide to complete your analysis. Using the spaces provided below, write the formulas where requested in the template.</p><p>FORMULA 1 ______FORMULA 7 ______</p><p>FORMULA 2 ______FORMULA 8 ______</p><p>FORMULA 3 ______FORMULA 9 ______</p><p>FORMULA 4 ______FORMULA 10 ______</p><p>FORMULA 5 ______FORMULA 11 ______</p><p>FORMULA 6 ______</p><p>3. Click the Excel icon from the program manager screen to start the spreadsheet program. Click on the Open File SmartIcon/Button to retrieve the template for the problem. Then enter the 11 FORMULAS where indicated on the template.</p><p>4. Click the Save File SmartIcon/Button to save your work.</p><p>5. Click the Print Button to print your work.</p>