Business, 14.04.2020 17:37 Superfamicom7748

He Silver 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 year, the company made the following estimate

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?
127% and $3.70
79% and $4.12
79% and $3.70
79% and $7.0

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