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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 | 300 | 1,250 | ||||||
Machine-hours | 3,100 | 3,000 | 6,100 | ||||||
Direct labor-hours | 2,900 | 2,800 | 5,700 | ||||||
Direct materials costs | $ | 11,400 | $ | 3,800 | $ | 15,200 | |||
Direct labor costs | 73,100 | 39,200 | 112,300 | ||||||
Manufacturing overhead costs | 199,956 | ||||||||
Total costs | $ | 327,456 | |||||||
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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