A Furniture Corporation Manufactures Two Models of Furniture-Standard and Deluxe

Multiple Choice

A furniture corporation manufactures two models of furniture-Standard and Deluxe. The total estimated manufacturing overhead costs are $64,200. The following estimates are available: $$\begin{array} { | l | r | r | } \hline & \text { Standard } & \text { Deluxe } \\\hline \text { Direct materials cost per unit } & \$ 250 & \$ 290 \\\hline \text { Direct labor cost per unit } & \$ 125 & \$ 140 \\\hline \text { Number of units } & 240 & 600 \\\hline\end{array}$$ The company uses direct labor costs as the base to allocate manufacturing overhead. Calculate the predetermined overhead rate. (Round your answer to two decimal places.)

A) 27.44%
B) 29.23%
C) 191.07%
D) 56.32%