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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
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 | 1,100 | 450 | 1,550 | ||||||
Machine-hours | 3,700 | 1,800 | 5,500 | ||||||
Direct labor-hours | 3,700 | 1,100 | 4,800 | ||||||
Direct materials costs | $ | 9,700 | $ | 3,300 | $ | 13,000 | |||
Direct labor costs | 67,700 | 35,300 | 103,000 | ||||||
Manufacturing overhead costs | 162,525 | ||||||||
Total costs | $ | 278,525 | |||||||
Required:
Compute the predetermined overhead rate assuming that Tiger Furnishings uses machine-hours to allocate overhead costs. (Round your answer to 2 decimal places.)
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