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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 | 900 | 450 | 1,350 | |||
Machine-hours | 3,400 | 1,200 | 4,600 | |||
Direct labor-hours | 2,900 | 1,200 | 4,100 | |||
Direct materials costs | $ | 10,400 | $ | 3,550 | $ | 13,950 |
Direct labor costs | 57,700 | 30,700 | 88,400 | |||
Manufacturing overhead costs | 145,140 | |||||
Total costs | $ | 247,490 | ||||
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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