Compute the predetermined overhead rate

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Question - Tiger Furnishings produces two models of cabinets for home theatre components, the Basic and the Dominator. Data on operations and costs for March follow:

Basic Dominator Total

Units produced 1,000 350 1,350

Machine-hours 4,300 1,100 5,400

Direct labor-hours 3,100 1,600 4,700

Direct materials costs $8,000 $3,700 $11,700

Direct labor costs 61,600 40,100 101,700

Manufacturing overhead costs 154,980

Total costs $268,380

Required - Compute the predetermined overhead rate assuming that Tiger Furnishings uses machine-hours to allocate overhead costs.

Reference no: EM132823687

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