The Bondi Company uses a predetermined overhead rate in applying overhead to production orders on a direct labor cost basis in Department A and on a machine hour basis in Department B. At the beginning of the year, the company made the following estimates: Dept. A Dept. B Direct labor cost $ 62,000 $ 42,000 Factory overhead $ 95,480 $ 47,120 Direct labor hours 6,200 9,200 Machine hours 2,200 15,200 What predetermined overhead rate would be used in Department A and Department B, respectively?
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