Charter company does not divide costs into fixed and

Reference no: EM13591931

The following information pertains to Charter Company:

Service Departments Producing Departments
Personnel Maintenance Fabrication Assembly
Budgeted overhead $80,000 $144,000 $280,000 $320,000
Direct labor hours 4,000 5,000 16,000 20,000
Machine hours 24,000 16,000
Number of employees 8 10 30 50

Charter Company does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours. Predetermined overhead rates for Fabrication and Assembly are based on direct labor hours. (Round amounts to dollars) If the direct method is used to allocate service department costs, the predetermined overhead ratea for the Fabrication Department (rounded to 2 decimal places) would be?

Reference no: EM13591931

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