The Westfield Company uses predetermined overhead rates to applymanufacturing overhead to jobs. The predetermined overhead rate isbased on machine hours in Department #1 and direct labor cost inDepartment #2 and at the beginning of the year, the company madethe following estimates:
|
Particulars
|
Dept #1 (Rs.)
|
Dept #2 (Rs.)
|
|
Direct labor cost
|
20,000
|
15,000
|
|
Manufacturing overhead
|
25,000
|
30,000
|
|
Direct labor hours
|
16,000
|
12,000
|
|
Machine hours
|
5,000
|
1,000
|
What predetermined overhead rates would be used in Department #1and Department #2, respectively?