Tiger Furnishings produces two models of cabinets for home theater components, t

Question

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

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.)

Predetermined overhead rate= per direct labor hour

Basic Dominator Total Units produced 1,050 450 1,500 Machine-hours 3,400 2,500 5,900 Direct labor-hours 3,800 2,800 6,600 Direct materials costs $ 11,000 $ 4,100 $ 15,100 Direct labor costs 64,300 38,200 102,500 Manufacturing overhead costs 229,680 Total costs $ 347,280

Explanation / Answer

Predetermined overhead rate= 229680/6600= 34.8 per direct labor hour

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