At Collins Company, manufacturing each job requires work in two departments Production Department A and Production Department B. The Collins Company uses departmental predetermined factory overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Department A and on machine hours in Department B. At the beginning of the year, the company made the following estimates:

Department A Department B

Direct labor cost $65,000 $42,000

Manufacturing overhead 91,000 48,000

Direct labor hours 8,000 10,000

Machine hours 3,000 12,000

3. Compute predetermined factory overhead rate for Department A and Department B. 4. Compute predetermined factory overhead rate for Department B.

5. Job 500 was one of the jobs completed during the year. Job 500 had used the following resources in each department:

Department A Department B

Direct materials cost $1,800 $1,200

Direct labor cost $2,000 $1,000

Direct labor hours 100 50

Machine hours 30 100