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The Johny Pickles Brewing Company takes custom orders for seasonal brews and has two separate departments, brewing and packaging. The brewing department allocates overhead based
The Johny Pickles Brewing Company takes custom orders for seasonal brews and has two separate departments, brewing and packaging. The brewing department allocates overhead based on batches produced while the packaging department allocates overhead to orders based on machine hours worked in the department. The estimated overhead for the brewing department for the year is $18,548 and the packaging department is estimated at $11,550. It is estimated that the brewery will produce 312 batches during the year and will spend 1,221 hours running the equipment to package those batches. At the end of the year, it is determined that 339 batches were actually produced and 1,440 hours were used to package the product. The overhead amounts actually incurred by the brewing and packaging departments were $22,564 and $10,689 respectively. What is the predetermined overhead rate for the packaging department? Round your answer to two decimal places
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