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QUESTION IMAGE

fill in the blank question | | company | dept. a | dept. b | | --- | --…

Question

fill in the blank question

companydept. adept. b
estimated direct labor cost$250,000$130,000$120,000
actual manufacturing overhead$720,000$400,000$320,000
actual direct labor cost$300,000$160,000$140,000

based on this information, the predetermined overhead rate per direct labor dollar for dept. b is $ \boxed{\space} . (round your answer to 2 decimal places.)

Explanation:

Step1: Identify relevant values

For Dept. B, estimated manufacturing overhead = $\$162,000$, estimated direct labor cost = $\$120,000$.

Step2: Calculate predetermined rate

Divide estimated overhead by estimated labor cost.
$\text{Predetermined rate} = \frac{\$162,000}{\$120,000}$

Step3: Compute and round result

Calculate the value and round to 2 decimal places.
$\frac{162000}{120000} = 1.35$

Answer:

1.35