The Watts Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the year, the company made the following estimates:
Dept A Dept B
Direct labor cost.................$30,000 $40,000
Manufacturing overhead............$60,000 $50,000
direct labor hours................ 6,000 8,000
machine hours..................... 2,000 10,000
What predetermined overhead rates would be used in Dept A and Dept B, respectively?