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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 | 400 | 1,500 | |||
Machine-hours | 4,400 | 2,800 | 7,200 | |||
Direct labor-hours | 2,100 | 1,200 | 3,300 | |||
Direct materials costs | $ | 11,800 | $ | 3,650 | $ | 15,450 |
Direct labor costs | 59,900 | 33,400 | 93,300 | |||
Manufacturing overhead costs | 115,500 | |||||
Total costs | $ | 224,250 | ||||
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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