P $9-17$: Dead Eye Putters

Dead Eye Putters manufactures golf putters in three models: P$450,$ Q$550,$ and R$650.$ Manufacturing

overhead is assigned to each putter model using a predetermined overhead rate and the direct labor hours

actually used in manufacturing each putter model. The firm calculates the overhead rate before the year

begins using a flexible budget. Budgeted volume is measured using direct labor hours.

The following data summarize the budgeted and actual production for the fiscal year:

After the fiscal year ends, Dead Eye Putters reports $$884,713$ underabsorbed overhead and actual overhead

incurred of $$25,875,026.$ Variable overhead was budgeted to be $$3\mathrm{.}50$ per direct labor hour.

Required:

a$.$ Compute Dead Eye Putter's manufacturing overhead rate used during the year.

b$.$ What budgeted fixed overhead did Dead Eye Putters use in computing its manufacturing overhead rate for the year?