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

40,500

191,000

Machine Hours

37,000

72,000

109,000

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

2,500

22,500

Machine Hours

3,500

14,000

17,500

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.

10 points