21 Lane Company manufactures a single product that requires a great deal of hand labor Overhead cost is applied on the basis of standard direct labor hours The budgeted variable manufacturing overhead is $3 80 per direct labor hour and the budgeted fixed manufacturing overhead is $1,287,000 per year 10 points The standard quantity of materials is 4 pounds per unit and the standard cost is $7 50 per pound The standard direct labor hours per unit is 1 5 hours and the standard labor rate is $12 90 per hour eBook The company planned to operate at a denominator activity level of 165,000 direct labor hours and to produce 110,000 units of product during the most recent year Actual activity and costs for the year were as follows Print References Actual number of units produced Actual direct labor hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred 132,000 214,500 $493,350 $1,320,000 Required 1 Compute the predetermined overhead rate for the year Break the rate down into variable and fixed elements 2 Prepare a standard cost card for the company's product 3a Compute the standard direct labor hours allowed for the year's production 3b Complete the following Manufacturing Overhead T account for the year 4 Determine the reason for any underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances Requirea 1 Compute the predetermined overhead rate for the year Break the rate down into variable and fixed elements 2 Prepare a standard cost card for the company's product 3a Compute the standard direct labor hours allowed for the year's production 3b Complete the following Manufacturing Overhead T account for the year 4 Determine the reason for any underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances 10 points eBook Complete this question by entering your answers in the tabs below Print References Req 1 Reg 2 Req 3A Req 3B Req 4 Complete the following Manufacturing Overhead T account for the year Manufacturing Overhead 1,813,350 2,296,800 Applied costs Actual costs 483,450 Reg 3A Reg 4

Question

21 Lane Company manufactures a single product that requires a great deal of hand labor  Overhead cost is applied on the basis of standard direct labor hours  The budgeted variable manufacturing overhead is $3 80 per direct labor hour and the budgeted fixed manufacturing overhead is $1,287,000 per year  10 points The standard quantity of materials is 4 pounds per unit and the standard cost is $7 50 per pound  The standard direct labor hours per unit is 1 5 hours and the standard labor rate is $12 90 per hour  eBook The company planned to operate at a denominator activity level of 165,000 direct labor hours and to produce 110,000 units of product during the most recent year  Actual activity and costs for the year were as follows  Print References Actual number of units produced Actual direct labor hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred 132,000 214,500 $493,350 $1,320,000 Required  1  Compute the predetermined overhead rate for the year  Break the rate down into variable and fixed elements  2  Prepare a standard cost card for the company's product  3a  Compute the standard direct labor hours allowed for the year's production  3b  Complete the following Manufacturing Overhead T account for the year  4  Determine the reason for any underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances  Requirea  1  Compute the predetermined overhead rate for the year  Break the rate down into variable and fixed elements  2  Prepare a standard cost card for the company's product  3a  Compute the standard direct labor hours allowed for the year's production  3b  Complete the following Manufacturing Overhead T account for the year  4  Determine the reason for any underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances  10 points eBook Complete this question by entering your answers in the tabs below  Print References Req 1 Reg 2 Req 3A Req 3B Req 4 Complete the following Manufacturing Overhead T account for the year  Manufacturing Overhead 1,813,350 2,296,800 Applied costs Actual costs 483,450 Reg 3A Reg 4

Accepted Answer

The Answer is in the image, click to view ...

21 Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basis of standard direct

Step by Step Solution

Step: 1

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Students explore these related Accounting questions