Calculate Lisa's budgeted MOH rate using one plant-wide pool based on DL costs

(round answer to 2 decimal places)

Budgeted MOH $_______ per DL

Lisa Corporation manufactures a variety of skin and beauty products, including its best-selling product, a hydrating lotion. In addition to tracking direct costs for all of its products, Lisa allocates MOH costs by using one plant-wide MOH rate based on DL costs. Total MOH costs are budgeted to be $1,570,000, while total DL costs are estimated at $500,000. After discussions with her peers, the controller at Lisa decides to break down the MOH costs into key activities, as shown below. Perhaps if she allocates the company's MOH costs using more detailed rates and cost drivers, she will have more accurate cost information with which to make better future decisions