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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 | 400 | 1,350 | ||||||
Machine-hours | 4,500 | 1,400 | 5,900 | ||||||
Direct labor-hours | 2,100 | 1,600 | 3,700 | ||||||
Direct materials costs | $ | 10,400 | $ | 4,200 | $ | 14,600 | |||
Direct labor costs | 67,600 | 35,500 | 103,100 | ||||||
Manufacturing overhead costs | 165,790 | ||||||||
Total costs | $ | 283,490 | |||||||
Required:
Compute the predetermined overhead rate assuming that Tiger Furnishings uses machine-hours to allocate overhead costs. (Round your answer to 2 decimal places.)
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