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 $ 68,000     $ 48,000   Factory overhead $ 112,880     $ 53,720   Direct labor hours   6,800       9,800   Machine hours   2,800       15,800     What predetermined overhead rate would be used in Department A and Department B, respectively?

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 $ 68,000     $ 48,000  
Factory overhead $ 112,880     $ 53,720  
Direct labor hours   6,800       9,800  
Machine hours   2,800       15,800  
 


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

 

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