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Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel

Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. They feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. Based on research the following information was gathered for the upcoming year:


Machining Department

Finishing Department

Estimated Manufacturing Overhead by Department

$1,000,000

$100,000

Trail Running Shoes

130,000 machine hours

9,000 direct labor hours

Running Apparel

70,000 machine hours

71,000 direct labor hours


Manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. 

Based on this information, what is the departmental manufacturing overhead rate for the machining and finishing department, respectively?

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