2. Cardi has two manufacturing departments - A & B and uses departmental rates for applying overhead. The total estimated fixed overhead for A is $1299, the variable rate per direct labor hour for A is $1. The total estimated fixed overhead for department B is $1152, the variable rate per machine hour for B is $1. They expect a total of 703 direct labor hours and 15 machine hours for the period.

The following actual information pertains to Job 4:

A B

Direct materials $444 $617

Direct labor $589 $3

Job 4 incurred 6 direct labor hours and 3 machine hours

What is the predetermined overhead rate for department A?

Hint:Remember whether we use estimated or actual data to compute our predetermined overhead rate, THEN consider which activity is used to allocate variable overhead for department A and lastly review how to compute a predetermined overhead rate for a mixed cost.