Jacob Company has two support depts, Maintenance and Personnel and two line depts, X and Y. The cost driver in Maintenance is standard service hours and directly-traced cost is $60,000. The cost driver in Personnel is number of employees and directly-traced cost is $9,000. Directly-traced cost in Depts X and Y is $18,000 and $30,000, respectively and the cost driver is direct labor hours. What is the overhead rate for Dept X? What is the overhead rate for Department Y?

	maint	pers.	dept x	dpt y
service hours used	100	50	300	150
employees	5	10	45	45
DLH			250	250

a. $120.00

b. $125.00

c. $250.00

d. $72.00

Work:

	maint.	pers.
directly traced cost	60,000	9,000
cost driver (300+150)	450
(45+45)		90
rate	$133.33	$100

60,000/450 = 133.33

9,000/90 = 100