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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 | 1,100 | 250 | 1,350 | ||||||
Machine-hours | 4,400 | 1,000 | 5,400 | ||||||
Direct labor-hours | 2,800 | 2,200 | 5,000 | ||||||
Direct materials costs | $ | 9,400 | $ | 4,150 | $ | 13,550 | |||
Direct labor costs | 54,800 | 36,300 | 91,100 | ||||||
Manufacturing overhead costs | 153,360 | ||||||||
Total costs | $ | 258,010 | |||||||
Required: |
Compute the predetermined overhead rate assuming that Tiger Furnishings uses machine-hours to allocate overhead costs. |
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