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. Standard Enhanced Total Units produced 25,500 8,500 34,000 Machine-hours 15,300 10,200 25,500 Direct labor-hours 19,125 19,125 38,250 Direct materials costs $ 510,000 $ 765,000 $ 1,275,000 Direct labor costs 306,000 650,250 956,250 Manufacturing overhead 841,500 Total costs 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. Standard Enhanced Total Units produced 25,500 8,500 34,000 Machine-hours 15,300 10,200 25,500 Direct labor-hours 19,125 19,125 38,250 Direct materials costs $ 510,000 $ 765,000 $ 1,275,000 Direct labor costs 306,000 650,250 956,250 Manufacturing overhead 841,500 Total costs 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
Problem 1Q
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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.
| Standard | Enhanced | Total | |
|---|---|---|---|
| Units produced | 25,500 | 8,500 | 34,000 |
| Machine-hours | 15,300 | 10,200 | 25,500 |
| Direct labor-hours | 19,125 | 19,125 | 38,250 |
| Direct materials costs | $ 510,000 | $ 765,000 | $ 1,275,000 |
| Direct labor costs | 306,000 | 650,250 | 956,250 |
| Manufacturing |
841,500 | ||
|
Total costs
|
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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