Answer:
$2.8
Step-by-step explanation:
Given that,
Overhead during the manufacturing of blankets = $350,000
Small blankets manufactured = 75,000
Large blankets manufactured = 25,000
Therefore,
Predetermined overhead rate:
= Overhead during the manufacturing ÷ (Estimated hours in the allocation base)
= $350,000 ÷ [(75,000 × 1) + (25,000 × 2)]
= $350,000 ÷ 125,000
= $2.8