Exercise 10A-2 Predetermined Overhead Rate; Overhead Variances [LO10-3, LO10-4]

Norwall Company's variable manufacturing overhead should be $1.25 per standard machine-hour and its fixed manufacturing overhead should be $93,312 per month The following information is available for a recent month a. The denominator activity of 25,920 machine-hours is used to compute the predetermined overhead rate b. At the 25,920 standard machine-hours level of activity, the company should produce 9,600 units of product. c. The company's actual operating results were Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost 10,550 27,350 38,290 $ 99,300 Required 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements Round your answers to 2 decimal places.) Predetermined overhead rate Variable element Fixed element per MH per MH per MH