S$10-13$ Compute standard overhead allocation rates $($Learning Objective $2)$

Homewood Farms supplies restaurants with many premanufactured ingredients $($such as bags of frozen french fries$).$ Assume that the manufacturing plant processing the fries anticipated incurring a total of $$3,080,000$ of manufacturing overhead during the year. Of this amount, $$1,320,000$ is fixed. Manufacturing overhead is allocated based on machine hours. The plant anticipates running the machines $220,000$ hours next year.

Compute the standard variable overhead rate.

Compute the fixed overhead rate.

Compute the standard total overhead rate.