Each division of a manufacturing company establishes its own estimates regarding overhead.

If division A allocated overhead on the basis of machine hours, and Division B allocates overhead as a percentage of direct labor costs, what would the predetermined overhead rate be for each division?

manufacturing company, utilizes job order costing. Each division establishes its own estimates regarding overhead, which are as follows Total estimated overhead Total estimated machine hours Total estimated direct labor costs Division A Division B $128,000 $261,000 16,000 72,500 155,000 $290,000 Required: If Division A allocates overhead on the basis of machine hours, and Division B allocates overhead as a percentage of direct labor costs, what would the predgtermined overhead rate be for each division? Division A Division B per machine hour % of direct labor costs Total estimated overhead Total estimated machine hours Total estimated direct labor costs Division A Division B $128,000 $261,000 72,500 $155,000 $290,000 16,000