Harrington Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine hours in the Machining Department and direct labor cost in the Assembly Department. At the beginning of the year, the company made the following estimates:

What predetermined overhead rates would be used in the Machining and Assembly Departments, respectively?

	Machining	Assembly
Direct Labor Hours	16,000	12,000
Direct Labor Cost	$20,000	$15,000
Machine Hours	5,000	1,000
Manufacturing Overhead	$25,000	$30,000

Multiple Choice

A. 110% and $15

B. $5.00 and 50%

C. $8.00 and 50%

D. $5,00 and 200%