Predetermined Overhead Rates Tiger Furnishings produces two models of cabinets to house home theatre components, the basic and the dominator. Data on operations and costs for March follow:

Required Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs.

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Units produced. Machine-hours Direct labor-hours Direct materials costs Direct labor costs...... Manufacturing overhead costs Total costs Basic Dominator Total 1,000 250 1,250 4,000 2,000 6,000 3,000 2,000 5,000 $10,000 $ 3,750 $ 13,750 64,500 35,500 100,000 174,100 $287,850