Overhead Application, Overhead Variances, Journal Entries Plimpton Company produces countertop ovens. Plimpton uses a standard costing system. The standard costing system relies on direct labor hours to assign overhead costs to production. The direct labor standard indicates that two direct labor hours should be used for every oven produced. The normal production volume is 100,000 units. The budgeted overhead for the coming year is as follows: Fixed overhead Variable overhead At normal volume. Plimpton applies overhead on the basis of direct labor hours. $760,000 446,000 During the year, Plimpton produced 97,000 units, worked 196,000 direct labor hours, d incurred actual fixed overhead costs of $770,500 and actual variable overhead costs of $437,540. Required: 1. Calculate the standard fixed overhead rate and the standard variable overhead rate. Round your answers to the nearest cent. Use rounded answers in the subsequent computations Standard fixed overhead rate 3.8 per direct labor hour Standard variable overhead rate 2.23 Vper direct labor hour 2. Compute the applied fixed overhead and the applied variable overhead. Use the application rates from part (1) in your calculations. Fixed Variable 4,920 X $4,920 x