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Abbey products produces two models of desks, the Slim and the Shady. Data on operations and costs for March follow: Slim Shady Total Units produced
Abbey products produces two models of desks, the Slim and the Shady. Data on operations and costs for March follow: Slim Shady Total Units produced 1,000 250 1,250 Machine-hours 4,500 2,500 7,000 Direct labor-hours 3,000 2,000 5,000 Direct materials $10,000 $ 3,750 $ 13,750 costs Direct labor costs 64,500 35,500 100,000 Manufacturing 175,000 overhead costs Total costs $288,750 Required: Compute the predetermined overhead rate assuming that Abbey products uses direct labor-hours to allocate overhead costs. Predetermined overhead rate per direct labor hour
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