The Watts Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labour cost in Department A and on machine hours in Department 8 At the beginning of the year, the company made the following estimates: Department A Department B Direct labour cost $30,000 $40,000 Manufacturing overhead $60,000 $50,000 Direct labour hours 6,000 8,000 Machine hours 2,000 10,000 What predetermined overhead rates would be used in Departments A and B, respectively? Select one: a. 200% and $5.00. b. 50% and $8.00. 2. 5096 and $5.00 d. 110% and $15.00