A-1 Furniture Manufacturing produces recliners. In June, the two production departments have budgeted allocation bases of 5000 machine hours in department 1 and 10,000 direct manufacturing labor hours in department 2. The budgeted manufacturing overhead for June was $70,000 for Dept. 1 and $60,000 for Dept. 2. For Job A, the actual costs incurred in the two departments were as follows:

Dept. 1 Dept. 2

Direct materials purchased on account$120,000$180,000

Direct materials used34,000 15,000

Direct manufacturing labor54,00055,000

Indirect manufacturing labor12,00010,000

Indirect materials used7,000 5,000

Equipment lease15,0005,000

Plant utilities2,0001,000

Job A incurred 900 machine hours in Dept. 1 and 400 manufacturing labor hours in Dept. 2.The company uses a budgeted overhead rate for applying overhead to production.

a)Determine the budgeted manufacturing overhead rate for each department.

b)Prepare the necessary journal entries to summarize the June transactions for Dept. 1.