Diewold Company has two departments, Milling and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Milling Department bases its rate on machine-hours, and the Assembly Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:

Department Milling Assembly 8,80061,000 2,700 Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour 3.00 Variable manufacturing overhead per direct labor-hour 68,900 S 360,000 $ 437,000 $ 2.75 Required 1. Compute the predetermined overhead rate to be used in each department. (Round your answers to 2 decimal places.) Department Milling Assembly Predetermined overhead rate 8.22 per MH per DLH 2. Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 407, which was started and completed during the year, showed the following Department Milling Assembly Direct labor-hours Machine-hours Materials requisitioned Direct labor cost 12 87 $ 790 $ 360 S 36 160