Tiger Furnishings produces two models of cabinets for home theater compo and costs for March follow: Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costa Total costa Basie Dominator Total 1,000 4,500 3,000 $10,000 $ 3,750 S 13,750 64,500 250 1,250 2,500 7,000 2,000 5,000 35,500 100, 000 175,000 $208,750
Tiger Furnishings produces two models of cabinets for home theater compo and costs for March follow: Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costa Total costa Basie Dominator Total 1,000 4,500 3,000 $10,000 $ 3,750 S 13,750 64,500 250 1,250 2,500 7,000 2,000 5,000 35,500 100, 000 175,000 $208,750
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Compute the predetermined
![Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. The following data on operations and costs for March are provided:
| | Basic | Dominator | Total |
|------------------------|-------|-----------|--------|
| Units produced | 1,000 | 250 | 1,250 |
| Machine-hours | 4,500 | 2,500 | 7,000 |
| Direct labor-hours | 3,000 | 2,000 | 5,000 |
| Direct materials costs | $10,000 | $3,750 | $13,750 |
| Direct labor costs | $64,500 | $35,500 | $100,000|
| Manufacturing overhead costs | | | $175,000|
| Total costs | | | $288,750|
**Required:**
Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs.
**Calculation:**
\[ \text{Predetermined overhead rate} = \frac{\text{Total manufacturing overhead costs}}{\text{Total direct labor-hours}} \]
\[ = \frac{175,000}{5,000} = \$35 \text{ per direct labor hour} \]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F59e1e845-820e-4fe9-add9-1fc4529c88f2%2F1dbfa143-da36-481a-b0fb-b72b46fa3129%2Fpf6n7uj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. The following data on operations and costs for March are provided:
| | Basic | Dominator | Total |
|------------------------|-------|-----------|--------|
| Units produced | 1,000 | 250 | 1,250 |
| Machine-hours | 4,500 | 2,500 | 7,000 |
| Direct labor-hours | 3,000 | 2,000 | 5,000 |
| Direct materials costs | $10,000 | $3,750 | $13,750 |
| Direct labor costs | $64,500 | $35,500 | $100,000|
| Manufacturing overhead costs | | | $175,000|
| Total costs | | | $288,750|
**Required:**
Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs.
**Calculation:**
\[ \text{Predetermined overhead rate} = \frac{\text{Total manufacturing overhead costs}}{\text{Total direct labor-hours}} \]
\[ = \frac{175,000}{5,000} = \$35 \text{ per direct labor hour} \]
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