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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 | 750 | 300 | 1,050 | |||
Machine-hours | 4,900 | 1,000 | 5,900 | |||
Direct labor-hours | 3,900 | 1,300 | 5,200 | |||
Direct materials costs | $ | 8,200 | $ | 4,200 | $ | 12,400 |
Direct labor costs | 69,800 | 32,300 | 102,100 | |||
Manufacturing overhead costs | 183,560 | |||||
Total costs | $ | 298,060 | ||||
Required:
Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs.
Predetermined overhead rate ______________ per direct labor hour
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