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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 | 850 | 350 | 1,200 | |||
Machine-hours | 4,900 | 1,400 | 6,300 | |||
Direct labor-hours | 2,500 | 2,000 | 4,500 | |||
Direct materials costs | $ | 10,900 | $ | 3,400 | $ | 14,300 |
Direct labor costs | 63,400 | 36,200 | 99,600 | |||
Manufacturing overhead costs | 159,300 | |||||
Total costs | $ | 273,200 | ||||
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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