Question

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		950		500		1,450
Machine-hours		4,000		1,100		5,100
Direct labor-hours		2,700		1,300		4,000
Direct materials costs	$	10,500	$	3,650	$	14,150
Direct labor costs		57,700		34,300		92,000
Manufacturing overhead costs						137,600
Total costs					$	243,750

Required:

Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs. (Round your answer to 2 decimal places.)