chapter 10

Prepare a standard cost card for the company's product. (Round your answers to 2 decimal places.) Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements. (Round your answers to 2 decimal places.) omplete the following Manufacturing Overhead T-account for the year. Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost Is applled on the basis of standard direct labor-hours. The budgeted varlable manufacturing overhead is $5.00 per direct labor-hour and the budgeted fixed manufacturing overhead is $2,295,000 per year. The standard quantity of materlals is 4 pounds per unlt and the standard cost is $10.50 per pound. The standard direct labor-hours pe unlt is 1.5 hours and the standard labor rate is $13.50 per hour. The company planned to operate at a denominator actlvity level of 255,000 direct labor-hours and to produce 170,000 units of product durlng the most recent year. Actual actlvity and costs for the year were as follows: ttt Required: 1. Compute the predetermined overhead rate for the year. Break the rate down Into varlable 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 varlable overhead rate and efficlency varlances and the fixed overhead budget and volume varlances. VItex, Incorporated manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: *Applied to Work in Process during the perlod. The company's manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materlals purchased during the perlod were used in production. Work In process inventorles are Insignificant and can be ignored. Required: 1. How many units were produced last perlod? 2. How many pounds of direct materlal were purchased and used in production? 3. What was the actual cost per pound of materlal? (Round your answer to 2 decimal places.) 4. How many actual direct labor-hours were worked during the perlod? 5. What was the actual rate pald per direct labor-hour? (Round your answer to 2 declmal places.) 6. How much actual varlable manufacturing overhead cost was incurred during the perlod