Technics Inc., a manufacturing company, utilizes job order costing. Each division establishes its own estimates regarding overhead which are as follows:
______________________________Division A ____ Division B
Total estimated overhead.....................$128,000..............$261,000
Total estimated machine hours.................16,000.................72,500
Total estimated direct labor costs.........$155,000.............$290,000
Required:
If Division A allocates overhead on the basis of machine hours, and Division B allocates overhead as a percentage of direct labor costs, what would the predetermined overhead rate be for each division?