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Compute the standard variable overhead allocation rate and

The following information relates to Smithson, Inc's overhead costs for the month:

Static budget overhead

$8,400

Static budget fixed overhead

$3,600

Static budget direct labor hours

1,200 Hrs

Static budget number of units

4,800 Hrs

Smithson allocates manufacturing overhead to production based on standard direct labor hours. Compute the standard variable overhead allocation rate and the standard fixed overhead allocation.

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