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A company produces surgical equipment that goes through threes processes, 1A1, 2B2, and 3C3, before they are complete. Expected costs and activities for the three

A company produces surgical equipment that goes through threes processes, 1A1, 2B2, and 3C3, before they are complete. Expected costs and activities for the three departments are shown below. All departments have departmental overhead rates based on direct labor hours. The overhead rate for department 2B2 is $____ per direct labor hour.

Department

1A1

Department

2B2

Department

3C3

Machine hours

15,000 MH

25,000 MH

20,000 MH

Direct labor hours

45,000 DLH

11,500 DLH

29,200 DLH

Overhead costs

$270,000

$253,000

$73,000

PRESENT YOUR ANSWER ROUNDED TO ZERO DECIMAL PLACES

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