The following information is for Ralfies Candies.

Ralfies Candies allocates variable overhead based on direct labor hours. Based on information from the flexible budget, what is the predetermined Variable OH allocation rate for this period?

Information from the Flexible Budget Actual Results 100% Percent of capacity Direct labor hours Units of output Variable overhead Fixed overhead Total overhead 100% 2,000 1,000 $ 4,000 $ 6,000 $10,000 Percent of capacity Direct labor hours Units of output Variable overhead Fixed overhead Total overhead 1,800 1,000 $3,500 $6,000 $9,500