1. The Work in Process inventory account of a manufacturing company shows a balance of $2,400 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $400 and $470 for direct materials and charges of $200 and $250 for direct labour. From this information, what predetermined overhead rate, as a percentage of direct labour costs, does the company appear to be using?

1. 240%.
2. 80%.
3. 300%.
4. 125%.

_______

2. 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 B. At the beginning of the year, the company made the following estimates:

	Department A	Department B
Direct labour cost	$60,000	$40,000
Manufacturing overhead	$66,000	$90,000
Direct labour hours	6,000	8,000
Machine hours	2,000	6,000

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

1. 50% and $5.00.
2. 200% and $5.00.
3. 110% and $15.00.
4. 50% and $8.00.