Lamar Corporation uses departmental manufacturing overhead rates to apply overhead. Direct labor cost is used to apply manufacturing overhead in Department A and machine hours are used for Department B. Dept. A Dept. B Direct Labor Cost $66,000 $33,000 Factory Overhead $79,200 $60,000 Direct Labor Hours 8,000 9,000 Machine Hours 4,000 15,000 What predetermined overhead rate would be used for departments A and B respectively? a. 83%; $5 b. 83%; $3 c. 120%; $4 d.$8.40; $5
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