Ashford Foods processes bags of organic frozen fruits sold at specialty grocery stores More Info 1 The company allocates manufacturing overhead based on direct labor hours Ashford has budgeted fixed manufacturing overhead for the year to be $624,000 The predetermined fixed manufacturing overhead rate is $17.00 per direct labor hour, while the standard variable manufacturing overhead rate is $0.55 per direct labor hour. The direct labor standard for each case is one -quarter (0.25) of an hour The company actually processed 164,000 cases of frozen organic fruits during the year and incurred $679,500 of manufacturing overhead. Of this amount, $648,000 was fixed. The company also incurred a total of 42,000 direct labor hours