The silver company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in department A and on a machine hour basis in department B. Beginning of 2008, the company made the following estimates;

Dept A. Dept B

Direct labor costs $60,000. $40,000

Factory overhead $90,000 $45,000

Direct labor hours 6000. 9000

Machine hours. 2000. 15,000

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

A. 150% and 300%

B. 150% and $3.00

C.$1.50 and 300%

D.$1.50 and $3.00