- Smithson, Inc., manufactures lead crystal glasses.
- Static budget variable overhead: $7,500
- Static budget fixed overhead: $3,000
- Static budget direct labor hours: 1,500 hours
- Static budget # of glasses: 4,800
Smithson allocates manufacturing overhead to production based on standard direct labor hours. Last month, Smithson reported the following actual results for the production of 7,500 glasses: actual variable overhead, $10,500; actual fixed overhead: $2,760. Compute the standard variable overhead rate, the standard fixed overhead rate, and overhead variances.