Dotsero technology inc has a job-order costing system the

Reference no: EM13597258

Dotsero Technology, Inc. has a job-order costing system. The company uses predetermined overhead rates Iin apply manufacturing overhead cost to individual jobs. The predetermined overhead rate in department A is based on machine-hours, and the rate in department B is based on direct material cost. At the beginning of the most recent year, the company's management made the following estimates for the year:
Department A Department B
Machine-hours. 70,000 19,000
Direct labor-hours.                        30,000 60,000
Direct materials cost                     195,000 282,000
Direct labor cost                            260,000 520,000
Manufacturing overhead cost         420,000 705,000

Compute the predeterminded overhead rates for department A and department B.

Reference no: EM13597258

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