Reference no: EM132567374
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 950 300 1,250
Machine-hours 3,500 1,600 5,100
Direct labor-hours 2,500 1,400 3,900
Direct materials costs $8,400 $3,350 $11,750
Direct labor costs 62,600 30,700 93,300
Manufacturing overhead costs 132,210
Total costs $237,260
Required:
Question 1: Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor costs to allocate overhead costs. (Round your answer to 2 decimal places.)