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The Bondi Company uses a predetermined overhead rate in applying overhead to production orders on a direct labor cost basis in Department A and on

The Bondi Company uses a predetermined overhead rate in applying overhead to production orders on a direct labor cost basis in Department A and on a machine hour basis in Department B. At the beginning of the year, the company made the following estimates:


Dept. A Dept. B

Direct labor cost $60,000 $40,000

Factory overhead $90,000 $45,000

Direct labor hours $6,000 $9,000

Machine hours 2000 15,000

What predetermined overhead rate would be used in Department A and Department B, respectively?

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