Compute the predetermined overhead rate assuming

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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 Dominator Total
Units produced   750     450     1,200  
Machine-hours   3,200     1,800     5,000  
Direct labor-hours   2,300     2,300     4,600  
Direct materials costs $ 11,400   $ 3,500   $ 14,900  
Direct labor costs   55,500     36,300     91,800  
Manufacturing overhead costs               163,898  
Total costs             $ 270,598  

Required:

Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor costs to allocate overhead costs. (Round your answer to 2 decimal places.)

Reference no: EM131753385

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