Overhead application rate}

Thomas Manufacturing Company uses a job order cost system and standard costs. It manufactures one product, whose standard cost follows:

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Materials, 20 yards @ $0.90 per yard. Direct labor, 4 hours @ $9.00 per hour Total factory overhead per unit (the ratio of variable costs to fixed costs is 3 to 1). Total unit cost. $18 36 32 $86 The standards are based on normal capacity of 2,400 direct labor hours. Actual activity for October follows: Materials purchased, 18,000 yards @$0.92 per yard Materials used, 9,500 yards Direct labor, 2,100 hours @ $9.15 per hour Total factory overhead, 500 units actually produced.. $16,560 19,215 17,760 Required: Compute the variable and fixed factory overhead rates per unit and per direct labor hour and the total fixed factory overhead based on normal capacity.