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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 | 500 | 1,500 | ||||||
Machine-hours | 3,600 | 1,600 | 5,200 | ||||||
Direct labor-hours | 3,500 | 2,300 | 5,800 | ||||||
Direct materials costs | $ | 11,200 | $ | 4,200 | $ | 15,400 | |||
Direct labor costs | 59,000 | 33,400 | 92,400 | ||||||
Manufacturing overhead costs | 206,712 | ||||||||
Total costs | $ | 314,512 | |||||||
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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