Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I figured out the rest of the problems I just only need help with setting up the T-account in 3d. Thank You!! Lane Company manufactures

I figured out the rest of the problems I just only need help with setting up the T-account in 3d. Thank You!!

image text in transcribedimage text in transcribed

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 $5.40 per direct labor-hour and the budgeted fixed manufacturing overhead is $2,679,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $11.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $13.70 per hour. The company planned to operate at a denominator activity level of 285,000 direct labor-hours and to produce 190,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual number of units produced 228,000 Actual direct labor-hours worked 370, 500 Actual variable manufacturing overhead cost incurred $1,148,550 Actual fixed manufacturing overhead cost incurred $2,964,000 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. nad 2A 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 Req 3B Req 4 Complete the following Manufacturing Overhead T-account for the year. Manufacturing Overhead 4,112,550 5,061,600 Applied costs Actual costs 949,050

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Corporate Surveillance Systems Research Methods For Greater Transparency

Authors: Isabel Wagner

1st Edition

1108837662, 978-1108837668

More Books

Students also viewed these Accounting questions

Question

What data need to be "processed" in some way?

Answered: 1 week ago

Question

a score of 70 or higher on the test?

Answered: 1 week ago