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 |
|
750 |
|
|
450 |
|
|
1,200 |
|
| Machine-hours |
|
3,200 |
|
|
1,800 |
|
|
5,000 |
|
| Direct labor-hours |
|
2,300 |
|
|
2,300 |
|
|
4,600 |
|
| Direct materials costs |
$ |
11,400 |
|
$ |
3,500 |
|
$ |
14,900 |
|
| Direct labor costs |
|
55,500 |
|
|
36,300 |
|
|
91,800 |
|
| Manufacturing overhead costs |
|
|
|
|
|
|
|
163,898 |
|
| Total costs |
|
|
|
|
|
|
$ |
270,598 |
|
Required:
Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor costs to allocate overhead costs. (Round your answer to 2 decimal places.)