Pierce Company uses a standard cost system in which it applies manufacturing o

Pierce Company uses a standard cost system in which it applies manufacturing overhead to its product on the basis of standard direct labor-hours (DLHs).
Below is the standard cost card for the product:

Direct materials 4.5 feet at $3.80 per foot

$17.10

Direct labor 3.0 DLHs at $9.50 per DLH

28.50

Variable overhead 3.0 DLHs at $2.00 per DLH

6.00

Fixed overhead 3.0 DLHs at $8.00 per DLH

24.00

$75.60

Last year the company produced 6000 units of product using 17000 direct labor hours. The actual total fixed overhead cost for the year was $140000 and
the volume variance was $12000 favorable.

Required:

a. Compute the total fixed overhead cost that was originally budgeted.

b. Compute the denominator activity figure that the company used in computing predetermined overhead rates.