Smithson, Inc., manufactures lead crystal glasses. The following information relates to the company’s overhead costs:

Smithson allocates manufacturing overhead to production based on standard direct labor hours. Last month, Smithson reported the following actual results for the production of 7,500 glasses: actual variable overhead, $10,500; actual fixed overhead, $2,760.

Requirement 

1. Compute the standard variable overhead rate and the standard fixed overhead rate.

Transcribed Image Text:

Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of glasses $ 7,500 $ 3,000 1,500 hours 4,800