Feline Company uses a normal job-order costing system. Currently, a plantwide overhead rate based on direct labor is used. Lola Katz, the plant manager, has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Some jobs spend most of their time in Department A, while others spend most of their time in Department B. Feline has the following data for its two departments for the coming year:

	Department A		Department B
Expected overhead cost		$75,000		$33,000
Expected direct labor hours		30,000 hrs.		24,000 hrs.

A. Compute the predetermined plantwide overhead rate. $fill in the blank 1 per direct labor hour

B. Compute the departmental overhead rates. (When required, carry out your answers to 3 decimal places.)

Dept. A	$fill in the blank 2 per direct labor hour
Dept. B	$fill in the blank 3 per direct labor hour

C. Which overhead rate would you recommend?

PlantwideDepartmental