Question
Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the
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 Standard 29,400 17,640 Enhanced 9,800 11,760 Total 39,200 29,400 Direct labor-hours 22,050 22,050 44,100 Direct materials costs $ 588,000 $882,000 $ 1,470,000 Direct labor costs 352,800 749,700 1,102,500 Manufacturing overhead Total costs Required: 740,880 $3,313,380 Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor costs to allocate overhead costs. Note: Round your answer to 2 decimal places. Predetermined overhead rate % of direct labor cost
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