What's your favorite Disney movie of all time? Why? Also in that movie identify an example of Direct Labor, Direct Material and Manufacturing Overhead in a Disney Movie Studio project. Identify a Fixed Cost and a Variable Cost. In order to establish a predetermined overhead rate, you must determine an allocation base. Do you feel DL hours, DL dollars or Machine hours is most appropriate? Why? Give an example of Actual Manufacturing Overhead cost elements in the production and distribution of a Disney movie. Do you think the concept of WIP applies for Disney movie production and distribution activities?