Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine-hours basis in Department B. At the beginning of the most recently completed year, the company made the following estimates:
|
Dept.A |
Dept.B |
| Direct labor cost |
$ |
63,000 |
$ |
40,000 |
| Manufacturing overhead |
$ |
80,010 |
$ |
68,450 |
| Direct labor-hours |
|
8,700 |
|
9,700 |
| Machine-hours |
|
4,700 |
|
18,500 |
What predetermined overhead rate would be used in Department A and Department B, respectively?