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 $4.00 per direct labor hour and the budgeted fored manufacturing overhead is $1.440,000 per year. 255 points The standard quantity of materials is 4 pounds per unit and the standard cost is $8.00 per pound. The standard direct labor hours per unit is 15 hours and the standard labor rate is $13.00 per hour The company planned to operate at a denominator activity level of 180,000 direct labor hours and to produce 120.000 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 5 144. 234. 61.6 $1,618, 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 the underapplied or overapplied overhead from (3) above by computing the variable overhead rate and efficiency variances and the formed overhead budget and volume variances Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3A Reg38 Reg 4 Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements. (Round your answers to 2 decimal places.) Predetermined overhead rate Variable rate per DLH per DLH Fixed rate DLH Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 38 Req4 Prepare a standard cost card for the company's product. (Round your answers to 2 decimal places.) pounds at DLHs at DLHs at per pound per DLH per DLH Direct materials Direct labor Variable overhead Fixed overhead Standard cost per unit DLHs at per DLH Complete this question by entering your answers in the tabs below. Reg 1 Req2 Reg 3A eq3B Reg 4 Complete the following Manufacturing Overhead T-account for the year. Manufacturing Overhead Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 38 Regle Determine the reason for the underapplied or overapplied overhead from (3) above by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Show less Variable overhead rate variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance
