Show your supporting computations for each response.

1. Determining Overhead Rate; Expected Actual Capacity Method. Desmond Corp. estimates that its production for the coming year will be 10,000 widgets, which is 80% of normal capacity, with the following unit costs: materials, $40; direct labor, $60. Direct labor is paid at the rate of $24 per hour. The widget shaper, the most expensive piece of machinery, must be run for 20 minutes to produce one widget. Total estimated overhead is expected to consist of $400,000 for variable overhead and $400,000 for fixed overhead. Required: Compute the overhead rate for each of the following bases, using the expected actual capacity activity level: (1)physical output (2)materials cost (3)direct labor cost (4)direct labor hours (5)machine hours (Round all amounts to the nearest whole number.)

2. Determining Overhead Rate; Normal Capacity Method. Desmond Corp. estimates that its production for the coming year will be 10,000 widgets, which is 80% of normal capacity, with the following unit costs: materials, $40; direct labor, $60. Direct labor is paid at the rate of $24 per hour. The widget shaper, the most expensive piece of machinery, must be run for 20 minutes to produce one widget. Total estimated overhead is expected to consist of $400,000 for variable overhead and $400,000 for fixed overhead. Required: Compute the overhead rate for each of the following bases, using the normal capacity activity level: (1)physical output (2)materials cost (3)direct labor cost (4)direct labor hours (5)machine hours (Round answers to the nearest whole dollar or percentage.)