fill in the blank question\n\n| | company | dept. a | dept b. |\n|--|--|--|--|\n| estimated manufacturing…

fill in the blank question\n\n| | company | dept. a | dept b. |\n|--|--|--|--|\n| estimated manufacturing overhead | $500,000 | $338,000 | $162,000 |\n| estimated direct labor cost | $250,000 | $130,000 | $120,000 |\n| actual manufacturing overhead | $720,000 | $400,000 | $320,000 |\n| actual direct labor cost | $300,000 | $160,000 | $140,000 |\n\nbased on this information, the predetermined overhead rate per direct labor dollar for dept b is $ blank. round your answer to 2 decimal places.\n\nneed help? review these concept resources.\n\nread about the concept
Answer
Explanation:
Step1: Recall overhead - rate formula
The formula for the predetermined overhead rate per direct - labor dollar is $\text{Predetermined overhead rate}=\frac{\text{Estimated manufacturing overhead}}{\text{Estimated direct labor cost}}$.
Step2: Identify values for Dept. B
For Dept. B, the estimated manufacturing overhead is $$162,000$ and the estimated direct labor cost is $$120,000$.
Step3: Calculate the rate
$\text{Predetermined overhead rate}=\frac{162000}{120000}=1.35$
Answer:
$1.35$