$25 is WRONG

Exercise 6-39 (Static) Predetermined Overhead Rates (LO 6-4) Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow: 250 Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs Basic Dominator Total 1,000 1,250 4,500 2,500 7,000 3,000 2,000 5,000 $ 10,000 $ 3,750 $ 13,750 64,500 35,500 100,000 175,000 $ 288,750 Required: Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs. Predetermined overhead rate $ 25 per direct labor hour X