Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | 850 | 400 | 1,250 | |||
Machine-hours | 4,100 | 1,700 | 5,800 | |||
Direct labor-hours | 3,300 | 1,800 | 5,100 | |||
Direct materials costs | $ | 11,200 | $ | 3,450 | $ | 14,650 |
Direct labor costs | 71,600 | 39,500 | 111,100 | |||
Manufacturing overhead costs | 182,070 | |||||
Total costs | $ | 307,820 | ||||
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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started