Edison Corporation's variable manufacturing overhead rate is $5.00 per direct labor-hour. Total budgeted fixed overhead is $25,000 per month. The $25,000 per month includes $7,000 in depreciation expense. Total budgeted direct labor-hours for the month of July is 20,000. Based on the month of July only, the predetermined overhead rate is $ (Enter your answer as a number rounded to 2 decimal places.)
| Fixed overhead rate per hour =$25000/20000 hrs | ||||
| =$1.25 | ||||
| Predetermined overhead rate = fixed overhead rate + variable overhead rate | ||||
| =$5+1.25 | ||||
| =6.25 | ||||
Edison Corporation's variable manufacturing overhead rate is $5.00 per direct labor-hour.