Reference no: EM132823687
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.