Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead Total costs Standard 29,700 17,820 22,275 $ 594,000 356,400 Enhanced 9,900 11,880 22,275 $ 891,000 757,350 Total 39,600 29,700 44,550 $ 1,485,000 1,113,750 730,620 $ 3,329,370 Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor costs to allocate overhead costs. Note: Round your answer to 2 decimal places.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Redfern Audio produces audio equipment including headphones. At the Campus
Facility, it produces two wireless models, Standard and Enhanced, which differ
both in the materials and components used and in the labor skill required. Data for
the Campus Plant for the third quarter follow.
Units produced
Machine-hours
Direct labor-hours
Direct materials costs
Direct labor costs
Manufacturing overhead
Total costs
Standard
29,700
17,820
22,275
$ 594,000
356,400
Predetermined overhead rate
Enhanced
9,900
11,880
22,275
$ 891,000
757,350
Total
Required:
Compute the predetermined overhead rate assuming that Redfern Audio uses
direct labor costs to allocate overhead costs.
Note: Round your answer to 2 decimal places.
% of direct labor cost
39,600
29,700
44,550
$ 1,485,000
1,113,750
730, 620
$ 3,329,370
Transcribed Image Text:Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead Total costs Standard 29,700 17,820 22,275 $ 594,000 356,400 Predetermined overhead rate Enhanced 9,900 11,880 22,275 $ 891,000 757,350 Total Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor costs to allocate overhead costs. Note: Round your answer to 2 decimal places. % of direct labor cost 39,600 29,700 44,550 $ 1,485,000 1,113,750 730, 620 $ 3,329,370
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