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What predetermined overhead rate would be used

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Question - The Bondi Company uses a predetermined overhead rate in applying overhead to production orders on a direct labor cost basis in Department A and on a machine hour basis in Department B. At the beginning of the year, the company made the following estimates:

 

Dept. A

Dept. B

Direct labor cost

$60,000

$40,000

Factory overhead

$90,000

$45,000

Direct labor hours

$6,000

$9,000

Machine hours

2000

15,000

Required - What predetermined overhead rate would be used in Department A and Department B, respectively?

Reference no: EM132833253

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