HM8-32Lehighton Chalk Company manufactures blackboard chalk for educational uses

HM8-32Lehighton Chalk Company manufactures blackboard chalk for educational uses. The companys product is sold by the box at $50 per unit. Lehighton uses an actual costing system which means that the actual costs of direct material direct labor and manufacturing overhead are entered into work-in-process inventory. The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Lehightons first two years of operation is as follows