Fundamentals of cost accounting

chapter 6: product and service costing

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:

	Basic			Dominator			Total
Units produced		850			300			1,150
Machine-hours		4,900			2,000			6,900
Direct labor-hours		2,200			1,900			4,100
Direct materials costs	$	11,600		$	3,700		$	15,300
Direct labor costs		61,100			36,000			97,100
Manufacturing overhead costs								142,721
Total costs							$	255,121

Required:

Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor costs to allocate overhead costs. (Round your answer to 2 decimal places.)