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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 | 1,150 | 450 | 1,600 | |||
Machine-hours | 3,700 | 1,700 | 5,400 | |||
Direct labor-hours | 2,700 | 2,100 | 4,800 | |||
Direct materials costs | $ | 8,200 | $ | 3,400 | $ | 11,600 |
Direct labor costs | 66,400 | 40,000 | 106,400 | |||
Manufacturing overhead costs | 168,000 | |||||
Total costs | $ | 286,000 | ||||
Required:
Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs. (Round your answer to 2 decimal places.)
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