Malta Electric Company produces two products, Resistors and Transistors, in a small manufacturing plant with a total manufacturing overhead of $21,000 in June. The factory has two departments:

- Design, which incurred $10,000 of manufacturing overhead and used 200 hours of direct labor.
- Production, which incurred $11,000 of manufacturing overhead and used 80 machine hours.

During June, 150 direct labor hours were used in making 100 units of Resistors, and 150 direct labor hours were used in making 100 units of Transistors.

If Malta Electric Company uses a department rate based on direct labor hours for the Design Department and machine hours for the Production Department, what were the department overhead rates for the Design and Production Departments in June?

Select one:

A. $50 per direct labor hour for both Design and Production

B. $62.50 per direct labor hour for Design, and $125 per machine hour for Production

C. $125 per direct labor hour for Design, and $62.50 per machine hour for Production

D. $50 per direct labor hour for Design, and $137.50 per machine hour for Production