Refer to the data in Exercise 6-38. 

Data from in Exercise 6-38.

Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow.

Required

Compute the predetermined overhead rate assuming that Redfern Audio uses direct material costs to allocate overhead costs.

Transcribed Image Text:

1 2 Units produced 3 Machine hours A Direct labor-hours 5 6 Direct materials cost 7 Direct labor costs 8 Manufacturing overhead 9 Total costs bia $ B Standard 24,000 14,400 18,000 480,000 $ 288,000 C Enhanced 8,000 9,600 18,000 D Total 32,000 24,000 36,000 720,000 $1,200,000 612,000 900,000 864,000 $ 2,964,000