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 Machine-hours Direct labor-hours Direct materials costs Direct labor costs 1,000 4,500 3,000 $ 10,000 $ 64,500 1,250 7,000 5,000 3,750 $ 13,750 35,500 100,000 175,000 $ 288,750 250 2,500 2,000 Manufacturing overhead costs Total costs Required: Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs.

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 Machine-hours Direct labor-hours Direct materials costs Direct labor costs 1,000 4,500 3,000 $ 10,000 $ 64,500 1,250 7,000 5,000 3,750 $ 13,750 35,500 100,000 175,000 $ 288,750 250 2,500 2,000 Manufacturing overhead costs Total costs Required: Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2MC: TyeDye Lights makes two products: Party and Holiday. It takes 80,900 direct labor hours to...

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