Problem 4-25 (Part Level Submission) Frameworks Artisans creates hand-painted picture frames. The frames are cast from resin in an automated process. Once the casting
is done, talented artisans hand-paint one of fifteen designs on each frame. In the final assembly process, a worker inserts the glass pane and attaches the backing to
the frame. Frameworks’ budget for the current year, along with the production requirements for two of the frames it produces, are as follows: Department Casting
Painting Assembly Direct labor hours — 63,700 12,500 Machine hours 28,100 — 871 Manufacturing overhead cost $254,000 $290,000
$51,000 Seasons of Fun Frame Department Casting Painting Assembly Direct labor hours — 0.5 0.1 Machine hours 1 — 0.05
Birth Announcement Frame Department Casting Painting Assembly Direct labor hours — 1 0.2 Machine hours 0.5 — 0.05
(a) Assume that Frameworks Artisans uses a single predetermined overhead application rate based on direct labor hours. Calculate the rate for the current year. (Round
overhead rate to 2 decimal places, e.g. 3.54.) ? Predetermined overhead rate $ /direct labor hour
