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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.

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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 ovethead is $3,40 per direct labor-hour and the budgeted fixed manufacturing overhead is $999000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $6.50 per pound. The standard direct labor-hours per unit is 15 hours and the standard labot fate is $12.70 pet hour. The company planned to operate at a denominator activity level of 135,000 direct labor-hours and to produce 90,000 units of product during the most recent year. Actual activity and costs for the year were as follows: 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 vatiable overhead rate and efficlency vatlances and the fored overhead budget and volume variances. Complete this question by entering your answers in the tabs below. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements. (Round your answers to 2 decimal places.) Complete this queestion by entering your answers in the tabs below. Prepare a standard cost card for the company's product. (Round your answers to 2 decimal plac Complete this question by entering your answers in the tabs below. Compute the standard direct labor-hours allowed for the year's production. Complete this question by entering your answers in the tabs below. Complete the following Manufacturing Overhead T-account for the year. Complete this question by entering your answers in the tabs below. Determine the reason for any underapplied or overapplied overhead for the year by computing the variable overhead rate and effclency variances and the fixed overhead budget and volume variances. (Indicate the effect of each variance by gelficting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). input all amounts as positive values.)

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