ane 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. Variable manufacturing overhead should be $2 per standard direct labor-hour and fixed manufacturing overhead should be $480,000 per year.

The companys product requires 3 pounds of material that has a standard cost of $7 per pound and 1.5 hours of direct labor time that has a standard rate of $12 per hour.

The company planned to operate at a denominator activity level of 60,000 direct labor-hours and to produce 40,000 units of product during the most recent year. Actual activity and costs for the year were as follows:

Number of units produced	42,000
Actual direct labor-hours worked	65,000
Actual variable manufacturing overhead cost incurred	$123,500
Actual fixed manufacturing overhead cost incurred	$483,000

2.

Prepare a standard cost card for the companys product. (Round "DLHs" to 2 decimal places.)

Standard direct labor hours

63,000

NEED ANSWERS AS FOLLOWS:

3b.

Complete the following Manufacturing Overhead T-account for the year

Manufacturing Overhead
Actual costs	606,500	Applied costs	630,000
		Overapplied overhead	23,500