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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 | 950 | 300 | 1,250 | ||||||
Machine-hours | 4,300 | 2,100 | 6,400 | ||||||
Direct labor-hours | 2,500 | 1,800 | 4,300 | ||||||
Direct materials costs | $ | 10,800 | $ | 3,650 | $ | 14,450 | |||
Direct labor costs | 57,700 | 37,500 | 95,200 | ||||||
Manufacturing overhead costs | 147,060 | ||||||||
Total costs | $ | 256,710 | |||||||
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.)
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