Chilezuk , S.A. of Gdansk , Poland , is a major producer of classic Polish sausage . The company* uses a standard cost system to help control costs . Manufacturing overhead is applied to production on the basis of standard direct labor-hours . According to the company's flexible budget , the follow - ing manufacturing overhead costs should be incurred at an activity level of 35, ON labor- hours ( the denominator activity leveli :` Variable manufacturing overhead cost .. . . . . FZ 87. 500 Fixed manufacturing overhead cost . 210,000 Total manufacturing overhead cost . ....... FZ287. 50.0 The currency in Poland is the zloty , which is denoted here by PZ. During the most recent year , the following operating results were recorded :" Activity :` Actual labor- hours worked .........` 3.0, 0.00 Standard labor- hours allowed for output ................ . 32, 000 Cost : Actual variable manufacturing overhead cost incurred PZ78, 000 Actual fixed manufacturing overhead cost incurred . . .. . . . . . P Z 209, 400 At the end of the year , the company's Manufacturing Overhead account contained the follow - ing data :` Manufacturing Overhead Actual 287, 400 Applied 272, 000 15, 400 Management would like to determine the cause of the FZIS, 40` underapplied overhead . Required :` Compute the predetermined overhead rate . Freak the rate down into variable and fixed cost Elements . Show how the PZZZZ.AND Applied figure in the Manufacturing Overhead account was computed