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:

	Department A	Department B
Direct labour cost	$40,000	$90,000
Manufacturing overhead	$100,000	$120,000
Direct labour hours	9,000	10,000
Machine hours	1,000	16,000

What predetermined overhead rates would be used in Departments A and B, respectively?

Multiple Choice

200% and $5.00

250% and $8.00

110% and $15.00

50% and $5.00