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Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine-hours
Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine-hours basis in Department B. At the beginning of the most recently completed year, the company made the following estimates: Dept.A Dept.B Direct labor cost $ 63,000 $ 40,000 Manufacturing overhead $ 80,010 $ 68,450 Direct labor-hours 8,700 9,700 Machine-hours 4,700 18,500 What predetermined overhead rate would be used in Department A and Department B, respectively
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