The Cupcake Escape
Cost of Production Report - Decorating Department
For the Month Ending May 30
Unit Information
Units charged to production:
Inventory in process, May 1			103
Received from Baking Department			1,542
Total units accounted for by the Production Department			1,645
Units to be assigned costs
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, May 1 (40% completed)	103		62
Started and completed in May	1,542	1,542	1,542
Transferred to Packaging Department in May	1,645	1,542	1,604
Inventory in process, May 31 (80% completed)	3,000	3,000	2,400
Total units to be assigned costs	4,645	4,542	4,004
Cost Information
Cost per equivalent unit:
		Direct Materials	Conversion
Total costs for May in Decorating Department		$ 12,217.98	$ 4,644.27
Divide by total equivalent units		4,542	4,004
Cost per equivalent unit		$ 2.69	$ 1.16
Costs assigned to production
	Direct Materials	Conversion	Total
Inventory in process, May 1	$ 276.53	$ 47.70	$ 324.23
Total costs for May in Decorating Department			$ 16,862.25
Total costs accounted for by the Decorating Department			$ 17,186.48
Cost allocated to completed and partially completed units
Inventory in process, May 1 (balance)			$ 71.55
To complete inventory in process, May 1	$ -	$ 395.78	$ 395.78
Cost of completed May 1 work in process			$ 467.33
Started and completed in May	$ 4,147.98	$ 1,788.72	$ 5,936.70
Transferred to Packaging Department in May			$ 6,404.03
Inventory in process, May 31 (sum the following 2 rows)	$ 8,070.00	$ 2,784.00	$ 10,854.00
Inventory in process, May 31	3,000	2,400
Cost per equivalent unit	$ 2.69	$ 1.16
Total costs assigned by the Decorating Department			$ 17,258.03

This question is worth 2 points. Factory overhead is based on the number of dozens of cupcakes that are decorated. You estimated that total factory overhead costs for the Decorating Department for this year would be $318,855 and that the factory would produce 137,791 dozen cupcakes per year. What is the predetermined factory overhead rate based on dozens of cupcakes? Round your answer to the nearest whole number.