Operating at a normal level of 30,000 direct labor-hours, Lasser Company produces 10,000 units of product each period. The direct labor wage rate is $12 per hour. Two and one-half yards of direct materials go into each unit of product; the material costs $8.60 per yard. Variable manufacturing overhead should be $1.90 per standard direct labor-hour. Fixed manufacturing overhead should be $168,000 per period.

Required:

1.         Using 30,000 direct labor-hours as the denominator activity, compute the predetermined overhead rate and break it down into variable and fixed elements.

2.         Complete the standard cost card below for one unit of product;

Transcribed Image Text:

Direct materials, 2.5 yards at $8.60 per yard $21.50 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit