Predetermined overhead rate % of direct labor cost

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 1,050 450 1,500
Machine-hours 3,800 1,800 5,600
Direct labor-hours 3,600 1,500 5,100
Direct materials costs  $ 11,400  $ 3,400  $   14,800
Direct labor costs  $ 73,800  $39,800  $  113,600
Manufacturing overhead costs      $  181,764
Total costs      $  310,164
 

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.)

Predetermined overhead rate
% of direct labor cost
Transcribed Image Text:Predetermined overhead rate % of direct labor cost
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