CH 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 $4 80 per direct labor hour and the budgeted fixed manufacturing overhead is $2,112,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $10.00 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $13.40 per hour The company planned to operate at a denominator activity level of 240,000 direct labor-hours and to produce 160,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual number of units produced Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred 192,000 312,000 $ 873,600 $2,184,000 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 Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3A Req 3B Req 4 Compute the predetermined overhead rate for the ye answers to 2 decimal places.) Break the rate down into variable and fixed elements. (Round your per DLH Predetermined overhead rate Variable rate per DLH Fixed rate per DLH Req2 ) Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Req 3B Reg 4 Prepare a standard cost card for the company's product. (Round your answers to 2 decimal places.) Book Direct materials pounds at ences per pound Direct labor DLHs at Variable overhead DLHs at per DLH per DLH per DLH DLHs at Fixed overhead Standard cost per unit CEFUL LIIVIM VUR MINCEPUULUU 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 computin efficiency variances and the fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Compute the standard direct labor-hours allowed for the year's production, Standard direct labor hours Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3A Req 3B Req 4 Complete the following Manufacturing Overhead T-account for the year. Manufacturing Overhead Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3A Req 3B Reg 4 Determine the reason for any underapplied or overapplied overhead for the year by computing the vari- efficiency variances and the fixed overhead budget and volume variances. (Indicate the effect of each "Fifor favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts a Variable overhead rate variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance
