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Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labour cost basis in Department A and on a
Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labour 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 labour cost $56,000$33,000 Manufacturing overhead$67,200$45,000 Direct labour hours 8,000 9,000 Machine hours 4,000 15,000 What predetermined overhead rate would be used in Department A and Department B. respectively? 0.83 and $3 Activate Windows GoSens to activate Windows
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