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

Direct materials	$	220
Direct labor ($14/hour)	$	350
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	$	180,000			$	100,000
Fixed cost		96,000				165,000

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

Required:

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.