Problem
Carol has decided to try and calculate her Manufacturing Overhead (MOH) allocation with a departmental rate rather than using a plant-wide rate. She works for Sheridan, Inc., a factory that produces seashell-themed keychains. She is looking at the costs derived from the production department and the department's total budgeted costs include: Factory Utilities, $64925; Factory Supervisor Salaries, $99500; Assembly Line Worker Wages, $282500; Maintenance Wages, $32000; Seashells, $16500; Metal for Keychains, $5500; and Factory Depreciation, $55000. What is the budgeted departmental MOH rate based on Direct Labor (DL) cost?