Bronzit Company estimated the following at the beginning of the year:

	Assembly Department		Testing Department		Total
Overhead	$700,000		$100,000		$800,000
Direct Labor Hours	150,500 hrs.		40,500 hrs.		191,000 hrs.
Machine Hours	37,000 hrs.		72,000 hrs.		109,000 hrs.

Bronzit uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department. Actual data for the month of May is as follows:

	Assembly Department		Testing Department		Total
Overhead	$50,000		$11,000		$61,000
Direct Labor Hours	20,000 hrs.		2,500 hrs.		22,500 hrs.
Machine Hours	3,500 hrs.		14,000 hrs.		17,500 hrs.

If Bronzit uses a plant wide overhead rate based on direct labor hours, instead of departmental rates, what is the predetermined overhead rate rounded to the nearest cent?

a.$4.50 per direct labor hour

b.$0.33 per direct labor hour

c.$8.65 per direct labor hour

d.$5 per direct labor hour

e.$4.19 per direct labor hour

Bronzit decides to continue using departmental overhead rates. What are the predetermined rates for the Assembly and Testing departments respectively? (Note: Round to two decimal places.)

a.Assembly: $5.25 per direct labor hour; Testing: $7.33 per machine hour

b.Assembly: $4.65 per direct labor hour; Testing: $1.39 per machine hour

c.Assembly: $2.23 per direct labor hour; Testing: $6.15 per direct labor hour

d.Assembly: $5.12 per machine hour; Testing: $7.22 per machine hour

e.None of these choices are correct