Tiger Furnishings produces two models of cabinets for home theater
components, the Basic and...
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 850 300 1,150
Machine-hours 4,400 2,000 6,400
Direct labor-hours 2,700 2,800 5,500
Direct materials costs $11,000 $3,450 $14,450
Direct labor costs 58,300 32,300 90,600
Manufacturing overhead costs 191,950
Total costs $297,000
Required:
Compute the predetermined overhead rate assuming that Tiger Furnishings
uses direct labor-hours to allocate overhead costs.
Pre-determined overhead rate, per direct labor hour.
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