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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:

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:

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

Required:

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.

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 $2?$

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.

Complete this question by entering your answers in the tabs below.

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.$)$

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