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Ch 2 4 : Homework with Video Assistance Question 2 of 8 View Policies Current Attempt in Progress Carla Vista Company produces one product, a

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Ch 24: Homework with Video Assistance
Question 2 of 8
View Policies
Current Attempt in Progress
Carla Vista Company produces one product, a putter called GO-Putter. Carla Vista uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $900,000 comprised of $300,000 of variable costs and $600,000 of fixed costs. Carla Vista applies overhead on the basis of direct labor hours.
During the current year, Carla Vista produced 72,700 putters, worked 82,300 direct labor hours, and incurred variable overhead costs of $230,860 and fixed overhead costs of $450,300.
(a)
Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. (Round answers to 2 decimal places, e.g.2.75,)
\table[[,Variable,Fixed],[Predetermined Overhead Rate $,$,]]
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