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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 overhead is $5.80 per direct labor-hour and the budgeted fixed manufacturing overhead is $3,087,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $12.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $13.90 per hour. The company planned to operate at a denominator activity level of 315,000 direct labor-hours and to produce 210,000 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 252,000 409,500 $1,351, 350 $3,276,000 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. te this question by entering your answers in the tabs below. Req 1 Req 2 Req Req 3B Reg 4 Compute the predetermined overhead rate for the year. Break the rate down into variable answers to 2 decimal places.) per DLH Predetermined overhead rate Variable rate per DLH Fixed rate per DLH Req 2 > Reg 1 Req 2 Req 3A Req 3B Req 4 Prepare a standard cost card for the company's product. (Round your answers to Direct materials pounds at DLHs at per pound Direct labor per DLH Variable overhead DLHs at per DLH per DLH Fixed overhead DLHs at Standard cost per unit Complete this question by entering your answers in the tabs Reg 1 Reg 2 Req Req 3B Req 4 Compute the standard direct labor-hours allowed for the year's produ Standard direct labor hours the tabs below. Req 1 Reg 2 Req Req 3B Req 4 Determine the reason for any underapplied or overapplied overhead for the year by cc efficiency variances and the fixed overhead budget and volume variances. (Indicate "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). In Variable overhead rate variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance

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