13. The Watts Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labour cost in Department A and on machine hours in Department B. At the beginning of the year, the company made the following estimates: Direct labour cost $60,000 $40,000 Manufacturing overhead $66,000 $90,000 Direct labour hours Machine hours What predetermined overhead rates would be used in Departments A and B, respectively? a. 50% and $5.00. b. 200% and $5.00. c. 110% and $15.00