Operating at a normal level of 30,000 direct labor-hours, I asser Company produces 10,000 units of product the following period. The direct labor wage rate is 12 per hour. Two and one-half yards of direct materials go into the following unit of product; the material costs 8.60 per yard. Variable manufacturing overhead should be 1.90 per standard direct labor-hour. Fixed manufacturing overhead should be 168,000 per period.
(a) Using 30,000 direct labor-hours as the denominator activity, compute the predetermined overhead rate and break it down into variable and fixed elements.

A destined outflow rate is calculated at the launch of the account period by dividing the estimated manufacturing outflow by the estimated exertion base. The destined outflow rate is also applied to product to grease determining a standard cost for a product.
You can calculate destined overhead rate by dividing the manufacturing outflow cost by the exertion motorist. For illustration, if the exertion motorist was machine- hours, also you would divide overhead costs by the estimated number of machine hours.[tex]Predetermined\ overhead\ rate\\ =\\\frac{Budgeted\ variable\ manufacturing\ overhead\ +\ Budgeted\ fixed\ manufacturing\ overhead}{Budget\ direct\ labor\ hours} \\[/tex]Fixed manufacturing overhead rate = Predetermined overhead rate − Variable overhead rate

Fixed manufacturing overhead rate = $7.50 − $1.90

Fixed manufacturing overhead rate = $5.60

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