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Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and...

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Accounting

Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow.
KA-15 KA-24 Total
Units produced 6004001,000
Machine-hours 360540900
Direct labor-hours 7501,7502,500
Direct materials costs $ 72,000 $ 120,000 $ 192,000
Direct labor costs 15,00035,00050,000
Manufacturing overhead costs 187,200
Total costs $ 429,200
Required:
a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor costs to allocate overhead costs.

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