More info The company allocates manufacturing overhead based on direct labor hours. Hawthorn has budgeted fixed manufacturing overhead for the year to be $632,000. The predetermined fixed manufacturing overhead rate is $17.00 per direct labor hour, while the standard variable manufacturing overhead rate is $0.95 per direct labor hour. The direct labor standard for each case is one - quarter (0.25) of an hour. The company actually processed 155,000 cases of frozen organic fruits during the year and incurred $696,640 of manufacturing overhead. Of this amount, $650,000 was fixed. The company also incurred a total of 42,400 direct labor hours. 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 Now determine the fixed overhead allocated to production. The fixed overhead allocated to production is Requirement 2. Compute the variable MOH rate variance and the variable MOH efficiency variance. What do these variances tell managers? variance as favorable (F) or unfavorable (U).) This variance tells managers that Hawthorn Foods used direct labor hours than anticipated for the actual volume of output. Requirement 3. Compute the fixed MOH budget variance and the fixed overhead volume variance. What do these variances tell managers? Budgeted fixed overhead Std. fixed overhead cost allocated to production = volume variance This variance tells managers that Hawthorn Foods produced more cases of frozen organic fruits than originally expected