The following information pertains to Blaze Company:

Service Departments

Producing Departments

Personnel

Maintenance

Fabrication

Assembly

Budgeted overhead

$160,000

$300,000

$280,000

$320,000

Direct labor-hours

2,000

2,500

8,000

10,000

Machine-hours

12,000

8,000

Number of employees

4

5

15

25

Blaze 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 rate for the Fabrication Department (rounded to 2 decimal places) would be:

1. $42.00
2. $65.00
3. $64.10
4. $69.55
5. $65.00