A company produces surgical equipment that goes through threes processes, 1A1, 2B2, and 3C3, before...
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Accounting
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.
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| Department 1A1 | Department 2B2 | Department 3C3 |
| Machine hours | 15,000 MH | 25,000 MH | 15,000 MH |
| Direct labor hours | 22,830 DLH | 15,000 DLH | 25,000 DLH |
| Overhead costs | $114,150 | $75,000 | $90,000 |
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