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XYZ company uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. X

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XYZ company uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. X and on machine-hours in Dept. Y. At the beginning of the year, the Corporation made the following estimates: Dept. x Dept. Y Direct labor cost OMR 40,000 OMR 60,000 Manufacturing overhead OMR 60,000 OMR 100,000 Direct labor-hours 6,000 9,000 Machine-hours 15,000 20.000 What predetermined overhead rates would be used in Dept. X and Dept. Y, respectively? O a. 167% and OMR 6.67 Ob. 200% and OMR 4.00 O c. 150% and OMR 5.00 O d. None of the given answers

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