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3 The following data is available for Crater Corporation's North American division for the years 2018 and 2019. During these years there were no inventories in the system 2019 Se, 00 12,900 $24,200,000 2018 54,600 12,000 $25,610,000 Production quantity Number of customers Revenues Expenses Direct materials & components Direct production wages (1) Production supervisory salaries Salaries paid to sales representatives (2) Advertising Insurance (3) Building rent (4) Other salaries (5) Honorarium to the members of the board Production quality control (6) Market research Depreciation (7) Facilities management (8) Personnel department Utilities production (9) Utilities other (10) Customer service (11) $ 3,215,600 1,460,000 266,400 663,000 683,300 119,670 263,640 1,170,000 435,200 132,150 347,490 1,328,700 885,230 688,600 197,500 857,600 365,140 919,400 $ 3,548,280 1,602,600 243, 100 654,600 576,400 114,600 261,800 1, 242,000 435,200 137,370 300, 360 1,170,900 747,200 621,200 195, 200 76700 306,500 926,600 $13,998,130 $13,885,530 Note: 1. Paid on the basis of production quantity 2. Ten representatives $30,000 per person +1.5% of sales revenue 3. Manufacturing - 60%, remaining - general liability 4. Manufacturing -70% Marketing - 10% remaining for Administration 5. Manufacturing -40% Marketing - 25% remaining for Administration Dura Drums Ltd. (located in Jamaica) experiences wide variation in demand for the 500-litre steel drums it fabricates. The leakproof, rustproof steel drums have a variety of uses, from storing liquids and bulk materials to serving as makeshift musical instruments. The drums are made to order and are painted according to the customer's specifications-often in bright patterns and designs. The company is well known for the artwork that appears on its drums. Unit costs are computed on a quarterly basis by dividing each quarter's manufacturing costs (materials, labour and overhead) by the quarter's production in units. The company's estimated costs, by quarter, for the coming year are as follows: Direct materials Direct labour Manufacturing overhead Total manufacturing costs Number of units to be produced Estimated cost per unit Quarter First Second Third Fourth $ 268,800 $ 130,000 $ 65,000 $ 195,000 200,000 100,000 50,000 150,000 320,000 240,00 190,000 290,000 $ 780,000 $ 470,000 $ 305,000 $ 635,000 80,000 40,000 20,000 60,000 $ 9.75 $ 11.75 $ 15.25 $ 10.58 Management finds the variation in unit costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead, since it is the largest element of cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. After some analysis, you have determined that the company's overhead costs are mostly fixed and therefore show little sensitivity to changes in the level of production. Required: 1. What would be the predetermined manufacturing overhead rate for the year on the basis of total units to be produced? (Round your answer to 2 decimal places.) Predetermined overhead rate per unit

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