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Lasser Company plans to produce 12,000 units next period at a denominator activity of 24,000 direct labor-hours. The direct labor wage rate is $11.00 per

Lasser Company plans to produce 12,000 units next period at a denominator activity of 24,000 direct labor-hours. The direct labor wage rate is $11.00 per hour. The company's standards allow 2 yards of direct materials for each unit of product; the standard material cost is $8.80 per yard. The company's budget includes variable manufacturing overhead cost of $1.80 per direct labor-hour and fixed manufacturing overhead of $144,000 per period.

Required:

1. Using 24,000 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.

Predetermined overhead rate per DLH
Variable element per DLH
Fixed element per DLH
(1) (2) (1) x (2)
Inputs Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 2 yards $8.8 per yard $17.60
Direct labor hours per hour
Variable manufacturing overhead hours per hour
Fixed manufacturing overhead hours per hour
Total standard cost per unit $17.60

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