Ryan Corporation manufactures auto steering systems. Prime cost and machine time estimates for one unit of the product for the year follow:

Direct materials$ 220Direct labor ($14/hour)$ 350Machine hours20

This product requires 15 hours of direct labor in Department A and 10 hours in Department B. Also, it requires 5 machine hours in Department A and 15 machine hours in Department B. Using output as the activity, the factory overhead costs estimated in these two departments follow:

ABVariable cost$ 180,000$ 100,000Fixed cost96,000165,000

Management expects the firm to produce 1,000 units during the year.

Required:

1. Assume the total actual overhead base used was equal to the estimated base for the 1,000 units produced. Assume that factory overhead was applied on the basis of direct labor hours. Compute the predetermined plantwide factory overhead rate.

2. If factory overhead were applied on the basis of machine hours, what would be the plantwide overhead rate?

3. If the company produced 1,000 units during the year, what was the total amount of applied factory overhead in each department in requirements 1 and 2?

5. Compute the departmental overhead rate and amount of applied overhead for Department A using direct labor hours as the allocation base and for Department B using machine hours as the allocation base.

Assume the total actual overhead base used was equal to the estimated base for the 1,000 units produced. Assume that factory overhead was applied on the basis of direct labor hours. Compute the predetermined plantwide factory overhead rate.(Round your answer to 2 decimal places.)

Predetermined plantwide factory overhead rateper direct labor-hour

If factory overhead were applied on the basis of machine hours, what would be the plantwide overhead rate?(Round your answer to 2 decimal places.)

Plantwide overhead rateper machine-hour

If the company produced1,000 units during the year, what was the total amount of applied factory overhead in each department in requirements 1 and 2? (Round "Predetermined Overhead Rate" answer to 2 decimal places.)

Department ADepartment BTotalApplied factory overhead using direct labor hoursApplied factory overhead using machine hours

• Compute the departmental overhead rate and amount of applied overhead for Department A using direct labor hours as the allocation base and for Department B using machine hours as the allocation base. (Round "Predetermined Overhead Rate" answer to 2 decimal places.)

Predetermined Overhead RateAmount of Applied OverheadUsing direct labor-hours for Department A:Using machine-hours for Department B