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

Direct materials $ $260$

Direct labor $($$$18/$hour$)$ $ $450$

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 $ $240,000$ $ $140,000$

Fixed cost $100,000169,000$

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.