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: Direct labor cost Manufacturing verhead Direct labor-hours Machine-hours Dept ADept B $63,500 $32,000 69,850 $ 70,000 7000 5,000 14,000 8,000 What predetermined overhead rate would be used in Department A and Department B respectively? Multiple Choice 91% of direct labor cost and $10 per machine hour 91% of direct labor cost and $5 per machine hour O 10% of direct labor cost and $10 per machine hour 110% of direct labor cost and $5 per machine hour