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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 1,000 250 1,250
Machine-hours 4,500 2,500 7,000
Direct labor-hours 3,000 2,000 5,000
Direct materials costs $ 10,000 $ 3,750 $ 13,750
Direct labor costs 64,500 35,500 100,000
Manufacturing overhead costs 175,000
Total costs $ 288,750

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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