Compton company uses a predetermined overhead rate in

Reference no: EM13617258

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?

Reference no: EM13617258

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