Providence Company Uses Departmental Manufacturing Overhead Rates to Apply Overhead

Multiple Choice

Providence Company uses departmental manufacturing overhead rates to apply overhead.Direct labour cost is used to apply manufacturing overhead in Department A and machine hours are used for Department B. $\begin{array}{|l|c|c|}\hline & \text { Dept. A } & \text { Dept. B } \\\hline \text { Direct labour cost } & \$ 56,000 & \$ 33,000 \\\hline \text { Factory overhead } & \$ 67,200 & \$ 45,000 \\\hline \text { Direct labour hours } & 8,000 & \\& & 9,000 \\\hline \text { Machine hours } & 4,000 & 15,000 \\\hline\end{array}$ What predetermined overhead rate would be used for departments A and B,respectively?

A) 83%; $3
B) 83%; $5
C) 120%; $3
D) $130%; $5