Stressed Out Inc. has two departments: cutting and finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The cutting department bases its rate on machine- hours, and the finishing department bases its rate on direct labour cost. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labour-hours 5,000 21,000 Machine-hours 45,000 3,000 Manufacturing overhead cost $382,500 $499,500 Direct labour cost $ 75,000 $270,000 Required: 1. Calculate the predetermined overhead rate to be used in each department. (10 marks) 2. Assume that the overhead rates that you computed in part (1) are in effect. The job cost sheet for job 509, which was started and completed during the year, showed the following