Springfield Corp. uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor)
and one manufacturing overhead cost pool. Springfield Corp. allocates manufacturing overhead costs using direct
manufacturing labor costs. The following information is provided:
Direct material costs
Direct manufacturing labor costs
Manufacturing overhead costs
Budget for 2020
$220,000
200,000
500,000
Actual Results for 2020
$200,000
300,000
480,000
What is the actual manufacturing overhead rate for 2020?
? 2.5
? 1.6
2.27
? 2.4