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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 | 400 | 1,350 | ||||||
Machine-hours | 3,100 | 2,700 | 5,800 | ||||||
Direct labor-hours | 3,000 | 2,000 | 5,000 | ||||||
Direct materials costs | $ | 8,400 | $ | 4,100 | $ | 12,500 | |||
Direct labor costs | 55,700 | 33,800 | 89,500 | ||||||
Manufacturing overhead costs | 164,720 | ||||||||
Total costs | $ | 266,720 | |||||||
Required:
Compute the predetermined overhead rate assuming that Tiger Furnishings uses machine-hours to allocate overhead costs.
Predetermined overhead rate______________ per machine -hour
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