Blackfoot Softball Glove Company
Blackfoot Softball Glove Company estimated the following yearly data at the beginning of the year:

\begin{array}{lccc}&\text { Assembly }\\&\text { Department }&\text { Testing Department }&\text { Total }\\\text { Overhead } & \$ 570,000 & \$ 130,000 & \$ 700,000 \\\text { Direct Labour Hours } & 142,500 & 32,500 & 175,000 \\\text { Machine Hours } & 32,000 & 65,000 & 97,000\end{array}

The company uses departmental overhead rates. In the assembly department, direct labour hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.Actual data for August are as follows:

\begin{array}{lccc}& \text { Assembly } & \text { Testing } & \text { Total } \\ & \text { Department } & \text { Department } & \\\text { Overhead } & \$ 42,000 & \$ 12,000 & \$ 54,000 \\\text { Direct Labour Hours } & 13,500 & 2,430 & 15,930 \\\text { Machine Hours } & 4,020 & 11,000 & 15,020\end{array}

-Refer to Blackfoot Softball Glove Company. Suppose the company decides to continue using departmental overhead rates. What are the predetermined rates for the assembly and testing departments, respectively?
A) assembly: $2 per direct labour hour; testing: $4 per machine hour
B) assembly: $4 per direct labour hour; testing: $2 per machine hour
C) assembly: $4 per direct labour hour; testing: $4 per direct labour hour
D) assembly: $7.22 per machine hour; testing: $7.22 per machine hour

Budgeted Overhead Is $40,000, Budgeted Direct Labour Hours Are 2,000

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