The machining and assembly departments

Reference no: EM13286930

Harrington Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine-hours in the Machining Department and direct labor cost in the Assembly Department. At the beginning of the year, the company made the following estimates:

Machining Assembly
Direct labor hours 16,000 12,000
Direct labor cost $ 20,000 $ 15,000
Machine-hours 5,000 1,000
Manufacturing overhead $ 25,000 $ 30,000

What predetermined overhead rates would be used in the Machining and Assembly Departments, respectively?

Reference no: EM13286930

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