Sarah Jane's Fashion uses the departmental approach to allocate factory overhead costs.

Expected total overhead costs	$800,000
Expected overhead costs in cutting	$100,000
Expected overhead costs in sewing	$700,000
Total expected annual direct labor costs	$300,000
Expected machine hours (for cutting)	100,000
Expected direct labor hours (for sewing)	200,000

Calculate the rate used by each department to allocate overhead costs.

a.

Cutting: $1.00 per machine hour; Sewing: $3.50 per direct labor hour

b.

Cutting: $5.00 per machine hour; Sewing: $4.00 per direct labor hour

c.

Cutting: $8.00 per machine hour; Sewing: $0.50 per direct labor hour

d.

Cutting: $16.00 per machine hour; Sewing: $8.00 per direct labor hour