Managerial Accounting

The Sky Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labour costs in Department A and on machine hours in Department B. At the beginning of the year, the company made the following estimates. What predetermined overhead rates would be used in Departments A and B, respectively? a. 50% and $5.00 b. 110% and $15.00 c. 200% and $5.00 d. 250% and $8.00