Compton company uses a predetermined overhead rate in


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       
   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?

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Financial Econometrics: Compton company uses a predetermined overhead rate in
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