A company uses a predetermined overhead rate to apply manufa…
A company 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 ADepartment BDirect labor cost$ 60,000$ 30,000Manufacturing overhead$ 90,000$ 45,000Direct labor-hours6,0009,000Machine-hours15,0005,000What predetermined overhead rates would be used in Department A and Department B, respectively?