LLX Inc. uses a predetermined overhead rate to apply manufac…
LLX Inc. uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine-hours in Department A and on labor cost in Department B. At the beginning of the year, the Corporation made the following estimates: Department A Department B Direct labor cost $ 60,000 $ 30,000 Manufacturing overhead $ 90,000 $ 45,000 Direct labor-hours 6,000 9,000 Machine-hours 15,000 5,000 What predetermined overhead rates would be used in Department A and Department B, respectively?