Best-Cut processes bags of frozen organic vegetables sold at specialty grocery stores. It allocates manufacturing overhead based on direct labour hours. Best-Cut has projected total overhead for the year to be $1,680,000. Of this amount, $1,260,000 relates to fixed overhead expenses. Best-Cut expects to process 280,000 cases of frozen organic vegetables this year. The direct labour standard for each case is 30 minutes. Requirements 1. Compute the standard variable overhead rate. 2. Compute the fixed overhead rate. 3. Compute the standard total overhead rate. Requirement 1. Compute the standard variable overhead rate. Begin by determining the formula, and then compute the standard variable overhead rate. = Standard variable overhead rate