1. West Company estimates that overhead costs for the next year will be $5,040,000 for indirect labor and $199,500 for factory utilities. The company uses machine hours as its overhead allocation base. If 145,000 machine hours are planned for this next year, what is the company's plantwide overhead rate?

2. A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $400,000. If the firm wants to earn $20,000 pretax income, how many units must be sold?