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. Variable manufacturing overhead should be $2.20 per standard direct labor-hour and foxed manufacturing overhead should be $279,000 per year The company's product requires 4 pounds of material that has a standard cost of S3.50 per pound and 1.5 hours of direct labor time that has a standard rate of $12.10 per hour The company planned to operate at a denominator activity level of 45,000 direct labor-hours and to produce 30,000 units of product during the most recent year. Actual activity and costs for the year were as follows Number of units produced Actual direct labor-hours workod Actual variable manufacturing overhead cost inourred Actual fxed manufacturing overhead cost incurred 3,000 58,500 S87.750 5321.750 Required: 1. Compule the predelermined overhead rale for the year. Break the rate down into variable and fixed elements. (Round your answers to 2 decimal places.) overhead per DLH per DLH per DLH Variable rate Food rate 2. Prepare a standard cost card for the company's product. (Round your answers to 2 decimal places.) Direct materials pounds at DLHs at DLHs at DLHs at per pound por DLH per DLH per DLH Direct labor Foood owerhead Standard cost per unit 3a. Compute the standard direct labor-hours allowwed for the year's production. 3b. Complete the tollowing 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 foxed 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).) S 40,050 Variable overhead rate varianos Variable overhead efficency 9.900 U S 42750 Fixed overhead budget variance Fixed overhead volume variance 5 55.800