Ch $24$: Homework with Video Assistance

Question $2$ of $8$

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Carla Vista Company produces one product, a putter called GO$-$Putter. Carla Vista uses a standard cost system and determines that it should take one hour of direct labor to produce one GO$-$Putter. The normal production capacity for this putter is $100,000$ units per year. The total budgeted overhead at normal capacity is $$900,000$ comprised of $$300,000$ of variable costs and $$600,000$ of fixed costs. Carla Vista applies overhead on the basis of direct labor hours.

During the current year, Carla Vista produced $72,700$ putters, worked $82,300$ direct labor hours, and incurred variable overhead costs of $$230,860$ and fixed overhead costs of $$450,300.$

$($a$)$

Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. $($Round answers to $2$ decimal places, e$.$g$.2\mathrm{.}75,)$

$\backslash$table$[[,$Variable,Fixed$],[$Predetermined Overhead Rate $$,$$$,]]$