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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 | 800 | 350 | 1,150 | ||||||
Machine-hours | 4,800 | 2,200 | 7,000 | ||||||
Direct labor-hours | 3,000 | 1,800 | 4,800 | ||||||
Direct materials costs | $ | 8,300 | $ | 3,900 | $ | 12,200 | |||
Direct labor costs | 64,200 | 38,100 | 102,300 | ||||||
Manufacturing overhead costs | 206,150 | ||||||||
Total costs | $ | 320,650 | |||||||
Required:
Compute the predetermined overhead rate assuming that Tiger Furnishings uses machine-hours to allocate overhead costs. (Round your answer to 2 decimal places.)
Predetermined overhead rate ___ per machine hour
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