I really need help with the following. Could you please break this down piece by piece??
Food for thought question #1
Lynch Audio produces stereo components for a major automotive stereo manufacturer. It currently uses the machine hour method of applying factory overhead to production. Information for the previous year follows:
Direct labor hours @ $10 per hour
During the year, Lynch produced a new product, Super Tweeters, which involved $27,000 of material, 3,100 direct labor hours and 4,500 machine hours.
a. Compute the predetermined factory overhead rate.
b. Compute the amount of under- or overapplied factory overhead.
c. Determine the cost of the Super Tweeter job.