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Lewis Company calculates its predetermined rates using practical volume, which is 288,000 units. The standard cost system allows 2 direct labor hours per unit produced. Overhead is applied using direct labor hours. The total budgeted overhead is $3,168,000, of which $864,000 is fixed overhead. The actual results for the year are as follows:
Units produced: 280,000Direct labor: 570,000 hours @ $9Variable overhead: $2,320,000Fixed overhead: $872,000
(1-1) The predetermined fixed overhead rate is:(1-2) The predetermined variable overhead rate is:(1-3) Calculate the applied fixed overhead.
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