The expected costs and operating data for two manufacturers are presented below.

Aloe Ltd applies factory overhead on the basis of units of production, whereas Basil Ltd uses direct labour hours. During the last financial year, Aloe Ltd produced 109 600 units and incurred factory overhead costs of $528 000, and Basil Ltds overhead costs were $860 000, using 174 000 direct labour hours.

Required

(a) Calculate the predetermined factory overhead rate for each company.

(b) Indicate whether factory overhead was overapplied or underapplied for each

company, and by how much. (LO3)