Ryan Corporation manufactures auto steering systems Prime cost and machine time estimates for one unit of the product for the year follow Direct materials $ 370 Direct labor ($29 hour) $ 725 Machine hours 20 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 A B Variable cost $ 405,000 $ 250,000 Fixed cost 111,000 180,000 Management expects the firm to produce 1,000 units during the year 1 Predetermined plantwide factory overhead rate $37 84 per direct labor hour If factory overhead were applied on the basis of machine hours, what would be the plantwide overhead rate 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

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

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


Direct materials	$	370
Direct labor ($29/hour)	$	725
Machine hours		20

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:

	A		B
Variable cost	$	405,000		$	250,000
Fixed cost		111,000			180,000

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

Predetermined plantwide factory overhead rate

$37.84

per direct labor-hour

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

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?