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 $2.40 per direct labor-hour and the budgeted fixed manufacturing overhead is $384,000 per year.

The standard quantity of materials is 4 pounds per unit and the standard cost is $4.00 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.20 per hour.

The company planned to operate at a denominator activity level of 60,000 direct labor-hours and to produce 40,000 units of product during the most recent year. Actual activity and costs for the year were as follows:

Actual number of units produced		48,000
Actual direct labor-hours worked		78,000
Actual variable manufacturing overhead cost incurred	$	124,800
Actual fixed manufacturing overhead cost incurred	$	429,000

3b. Complete the following Manufacturing Overhead T-account for the year.

Complete the following Manufacturing Overhead T-account for the year. Manufacturing Overhead Actual costs Applied costs 0