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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 | 300 | 1,100 | ||||||
Machine-hours | 3,900 | 2,200 | 6,100 | ||||||
Direct labor-hours | 4,000 | 2,300 | 6,300 | ||||||
Direct materials costs | $ | 10,600 | $ | 3,850 | $ | 14,450 | |||
Direct labor costs | 70,700 | 34,200 | 104,900 | ||||||
Manufacturing overhead costs | 179,645 | ||||||||
Total costs | $ | 298,995 | |||||||
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 rateper machine-hour
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