Meman Ryan Corporation manufactures auto steering systems. Prime cost and machine time estimates for one unit of the product for the yearfollow:Direct materialsDirect labor ($29/hour)Machine hours$ 370$ 72520This product requires 15 hours of direct labor in Department A and 10 hours in Department B. Also, it requires 5 machine hours inDepartment A and 15 machine hours in Department B. Using output as the activity, the factory overhead costs estimated in these twodepartments follow:Variable costFixed costA$ 405,000111,000B$250,000180,000Management 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 factoryoverhead 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 inrequirements 1 and 2?5. Compute the departmental overhead rate and amount of applied overhead for Department A using direct labor hours as theallocation base and for Department B using machine hours as the allocation base.Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Required 5Assume the total actual overhead base used was equal to the estimated base for the 1,000 units produced. Assume thatfactory overhead was applied on the basis of direct labor hours. Compute the predetermined plantwide factory overheadrate. (Round your answer to 2 decimal places.)Predetermined plantwide factory overhead rateper direct labor-hour< Required 1Required 2 >

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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: Direct materials Direct labor ($29/hour) $ 370 $ 725 20 Machine hours 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: