EXERCISE 10A6 Predetermined Overhead Rate LO104 Lasser Company plans to produce 10,000 units next period at a denominator activity of 30,000 direct labor-hours. The direct labor wage rate is $12 per hour. The companys standards allow 2.5 yards of direct materials for each unit of product; the standard material cost is $8.60 per yard. The companys budget includes variable manufacturing overhead cost of $1.90 per direct labor-hour and fixed manufacturing overhead of $168,000 per period.

Required: 1. Using 30,000 direct labor-hours as the denominator activity, compute the predetermined overhead rate and break it down into variable and fixed elements. 2. Complete the standard cost card below for one unit of product:

(1) Standard Quantity or Hours (2) Standard Price or Rate Standard Cost (1) (2) Direct materials . . . . . . . . . . . . . . . . . . . . . . . 2.5 yards.......... $8.60 per yard.......... $21.50 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . ? ? ? Variable manufacturing overhead . . . . . . . ? ? ? Fixed manufacturing overhead . . . . . . . . . ? ? ? Total standard cost per unit . . . . . . . . . . . . $ ?