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 $64,250.The following estimates are available: $$\begin{array} { | l | l | l | } \hline & \text { Standard } & \text { Deluxe } \\\hline \text { Direct materials cost per unit } & \$ 250 & \$ 280 \\\hline \text { Direct labor cost per unit } & \$ 115 & \$ 140 \\\hline \text { Number of units } & 250 & \$ 00 \\\hline\end{array}$$ 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) 27.87%
B) 29.20%
C) 18.36%
D) 56.98%