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Exercise 6-38 (Algo) Predetermined Overhead Rates (LO 6-2) Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard
Exercise 6-38 (Algo) Predetermined Overhead Rates (LO 6-2) 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. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead Total costs Standard 28,200 16,920 21,150 $ 564,000 338, 400 Predetermined overhead rate Enhanced 9,400 11,280 21,150 $ 846,000 719, 100 Total Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor-hours to allocate overhead costs. Note: Round your answer to 2 decimal places. per direct labor hour 37,600 28,200 42,300 $ 1,410,000 1,057,500 778,320 $3,245,820
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