Aloe Ltd applies factory overhead on the basis of units produced, whereas Basil Ltd uses direct labour hours. During the last financial year, Aloe Ltd produced 54,800 units and incurred factory overhead costs of $264,000 , and Basil Ltd's over costs were $430,000 , using 87,000 direct labour hours.
Problem A) Calculate the predetermined factory overhead rate for each company
Problem B) Indicate whether factory overhead was over-applied or under-applied for each company, and by how much