Check my work Problem 10A-8 Applying Overhead; Overhe Variances [LO10-3, LO10-4] Lane Company manufactures a single product and applies overhead cost to that product using standard direct labo The budgeted var overhead is $612,000 per year. r-hours. able manufacturing overhead is $2.80 per direct labor-hour and the budgeted fixed manufacturing The standard quantity of materials is 4 pounds per unit and the standard cost is $ hours,per unit is 1.5 hours and the standard labor rate is $12.40 per hour 5.00 per pound. The standard direct labor- The company planned to operate at a denominator activity level of 90,000 direct labor-hours a product during the most recent year. Actual activity and costs for the year were as nd to produce 60,000 units of Actual number of units produced Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred $210,680 Actual fixed manufacturing overhead cost incurred $643,580 72,000 117,000 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 ype here to search 411 PM 7/31/2014