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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 $2.80 per direct labor-hour and the budgeted fixed manufacturing overhead is $612,000 per year The standard quantity of materials is 4 pounds per unit and the standard cost is $5.00 per pound. The standard direct labor-hours unit is 1.5 hours and the standard labor rate is $12.40 per hour per The company planned to operate at a denominator activity level of 90,000 direct labor-hours and to produce 60,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual nunber of units produced 72,000 Actual varscs. banurectur ing overhead cost incurred direct labor-hours worked Actual variable manufacturing overhead cost ineurred 210,600 Actual fixed manufacturing overhead cost ineurred 110, 000 643,500 nces 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 years 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 fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3A Req 38 Req 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.) rate Variable rate Fixed rate per DLH per DLH per DLH Req2 ) 72,000 117,000 Actual number of units produced Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred 210,600 Actual fixed manufacturing overhead cost incurred 643,500 Required: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elem 2. Prepare a standard cost card for the company's product. 3a. Compute the standard direct labor-hours allowed for the years 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 var efficiency variances and the fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below. Req 1 Req 3A Req 3B Req 4 Prepare a standard cost card for the company's product. (Round your answers to 2 decimal places.) Direct materials Direct labor Variable overhead Fixed overhead Standard cost per unit pounds at DLHs at DLHs at DLHs at per pound per DLH per DLH per DLH Required: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable an 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 comp efficiency variances and the fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Compute the standard direct labor-hours allowed for the year's production. Standard direct labor hours K Req 2 Req 38> Mc Complete this question by entering your answers in the tabs below. Req 2 Req 3A Req 38 Req 4 Req 1 Determine the reason for the underapplied or overapplied overhead from (3) above by computing the and efficiency variances and the fixed overhead budget and volume variances. (Indicate the effe selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input values.) Variable overhead rate variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance

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