Watson Foods processes bags of organic frozen fruits sold at specialty grocery stores. (Click the icon to view additional information.) Read the requirements. Requirement 1. How much variable overhead would have been allocated to production? How much fixed overhead would have been allocated to production? The variable overhead allocated to production is More info The company allocates manufacturing overhead based on direct labor hours. Watson has budgeted fixed manufacturing overhead for the year to be $632,000. The predetermined fixed manufacturing overhead rate is $16.20 per direct labor hour, while the standard variable manufacturing overhead rate is $0.50 per direct labor hour. The direct labor standard for each case is one-quarter (0.25) of an hour. The company actually processed 162,000 cases of frozen organic fruits during the year and incurred $676,680 of manufacturing overhead. Of this amount, $642,000 was fixed. The company also incurred a total of 40,800 direct labor hours. Print Done