456 BU4590 Spring 20 Case 2 Thunderbird crafts Inc. manufactures a special type of stereo that can be adapted for use most pre-1965 classic cars uses standard cost system lo facilitate its planning process and enable a timely assessment of Factory overhead is applied to labor hours. A condensed version of the company's nexible budget of factory overhead at the beginning of the year follows Direct labor hours Variable costs $10,000 $12,500 Fixed costs Each stereo requires 3 Ibsofmalerial at a standard cost of S5 per pound and 2 hours of direct labor standard cost of S10 per hour. For the current year, the company planned to operate at the normal capacity level of 5.000 direct labor hours and to prod on and actual costs for the year follow: Number of units prod Actual direct labor hours woeked $17,000 Actual variable overhead costs incurred Actual fixed overhead oosts inpumed werd er Excel to present your answers to questions and 5 below, For questios 4, you may complete the attached ksheet which d y resembles the diag applicable, show your ealeulations ure partial credil. Use the esample in the text on pages 45f-Ass for guidance 1. For the current year, the predetermined factory overhead rate that will be used to apply costs to production. Show the variable and fivodeong that make w the total predetertined he product. In addikonto direct materials and direct labor, aow the a standard cost card for rate. individual elements ofthe factory overhead rale as well as the total owed for production and (b) thr (a) standard hours al overhead for the year at Jatu of methods Determine the reason for any under or over faalary overhead using ae following applied ance method thod in 40a above: vrianons of goods sold the appropriate and the likely causes ereach based on your ofeach surinnor b. Briefly purpose Be brief but