Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Standard 29,100 17,460 21,825 Enhanced 9,700 Total 38,800 11,640 29,100 Direct materials costs Direct labor costs $ 582,000 349,200 21,825 $ 873,000 742,050 43,650 $ 1,455,000 1,091,250 Manufacturing overhead 750,780 $ 3,297,030 Total costs Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor costs to allocate overhead costs. Note: Round your answer to 2 decimal places. Predetermined overhead rate % of direct labor cost
Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Standard 29,100 17,460 21,825 Enhanced 9,700 Total 38,800 11,640 29,100 Direct materials costs Direct labor costs $ 582,000 349,200 21,825 $ 873,000 742,050 43,650 $ 1,455,000 1,091,250 Manufacturing overhead 750,780 $ 3,297,030 Total costs Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor costs to allocate overhead costs. Note: Round your answer to 2 decimal places. Predetermined overhead rate % of direct labor cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard
and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for
the third quarter follow.
Units produced
Standard
29,100
Enhanced
9,700
Total
38,800
Machine-hours
Direct labor-hours
Direct materials costs
Direct labor costs
17,460
21,825
$ 582,000
349,200
11,640
29,100
21,825
$ 873,000
742,050
43,650
$ 1,455,000
1,091,250
Manufacturing overhead
750,780
$ 3,297,030
Total costs
Required:
Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor costs to allocate overhead costs.
Note: Round your answer to 2 decimal places.
Predetermined overhead rate
% of direct labor cost
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