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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 | 1,000 | 450 | 1,450 | |||
Machine-hours | 4,700 | 2,400 | 7,100 | |||
Direct labor-hours | 2,600 | 2,000 | 4,600 | |||
Direct materials costs | $ | 11,700 | $ | 3,550 | $ | 15,250 |
Direct labor costs | 63,900 | 33,100 | 97,000 | |||
Manufacturing overhead costs | 158,700 | |||||
Total costs | $ | 270,950 | ||||
|
Required:
Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs. (Round your answer to 2 decimal places.)
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