WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department is based on machine hours, and the rate in the Fabrication Department is based on direct labor-hours. At the beginning of the year, the companys management made the following estimates for the year:

Problem 4-21 Multiple Departments; Applying Overhead LO4-1, LO4-2, LO4-3, LO4-4) WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department is based on machine hours, and the rate in the Fabrication Department is based on direct labor-hours. At the beginning of the year, the company's management made the following estimates for the year: Department Preparation Fabrication Machine-hours 82,000 39,000 Direct labor-hours 36,000 57,200 195,000 $205,000 Direct materials cost S Direct labor cost $276,000 $514,000 262,400 $549,120 Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour 2.20 Variable manufacturing overhead per direct labor-hour 4.20 Job 127 was started on April 1 and completed on May 12. The company's cost records show the following information conceming the job: Department Preparation Fabrication Machine-hours 330 67 Direct labor-hours 82 25 948 1,180 Direct materials cost Direct labor cost 700 980 Requred: 1. Compute the predetermined overhead rate used during the year in the Preparation Department. Compute the rate used in the Fabrication Department. (Round predetermined overhead rate to 2 decimal places.) Predetermined Overhead Rate per MH Preparation department Fabrication department per DLH