ACCOUNTING 521-Tiger Furnishings produces two models of cabinets
by | Mar 18, 2020 | Uncategorized
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 |
|
1,100 |
|
|
250 |
|
|
1,350 |
|
| Machine-hours |
|
4,400 |
|
|
1,000 |
|
|
5,400 |
|
| Direct labor-hours |
|
2,800 |
|
|
2,200 |
|
|
5,000 |
|
|
|
|
|
|
|
|
|
|
|
| Direct materials costs |
$ |
9,400 |
|
$ |
4,150 |
|
$ |
13,550 |
|
| Direct labor costs |
|
54,800 |
|
|
36,300 |
|
|
91,100 |
|
| Manufacturing overhead costs |
|
|
|
|
|
|
|
153,360 |
|
|
|
|
|
|
|
|
| Total costs |
|
|
|
|
|
|
$ |
258,010 |
|
|
|
|
|
|
|
|
| Required: |
|
Compute the predetermined overhead rate assuming that Tiger Furnishings uses machine-hours to allocate overhead costs.
|
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