Single rate verse departmental rates Western Wood Product has two production departments: cutting and assembly. The company has been using a single predetermined cost driver rate based on plantwide direct labor hours. That is, the plantwide cost driver rate is computed by dividing plantwide support costs by total plantwide direct labor hours. The estimates for support costs and quantities of cost drivers for 2006 follow:
Cutting     Assembly     Total
Manufacturing support     $25,000     $35,000     $60,000
Direct labor hours     1,000     3,000     4,000
Machine hours     4,000     2,000     6,000

a. What was the single plantwide cost driver rate for 2006