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 $5.60 per direct labor-hour and the budgeted fixed manufacturing overhead is $2,880,000 per year.

The standard quantity of materials is 4 pounds per unit and the standard cost is $12.00 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $13.80 per hour.

The company planned to operate at a denominator activity level of 300,000 direct labor-hours and to produce 200,000 units of product during the most recent year. Actual activity and costs for the year were as follows:

Actual number of units produced		240,000
Actual direct labor-hours worked		390,000
Actual variable manufacturing overhead cost incurred	$	1,248,000
Actual fixed manufacturing overhead cost incurred	$	3,120,000

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 companys 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. Reg 1 Reg 2 Req Req 3B Req 4 Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements. (RC answers to 2 decimal places.) Predetermined overhead rate Variable rate e rate Fixed rate I per DLH per DLH per DLH Req 1 Req 2 > 4. Determine the reason for the underapplied or overapplied overhead from (3) above by computing the variable overhead rate efficiency variances and the fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below. Book rint Reg 1 - Reg z Reg 2 Req Reg 3B Reg 4 rences Prepare a standard cost card for the company's product. (Round your answers to 2 decimal places.) per pound per DLH Direct materials Direct labor Variable overhead Fixed overhead Standard cost per unit pounds at DLHs at DLHs at DLHs at per DLH $ $ $ $ $ 0.00 0.00 0.00 0.00 0.00 per DLH Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req Req 3B Reg 4 Compute the standard direct labor-hours allowed for the year's production. Standard direct labor hours Reg 1 Reg 2 Reg 2 Req Req 3A Reg 38 Reg 3B Reg 4 Complete the following Manufacturing Overhead T-account for the year. Manufacturing Overhead Req 1 Reg 2 Req Req 3B Reg 4 Determine the reason for the underapplied or overapplied overhead from (3) above by co and efficiency variances and the fixed overhead budget and volume variances. (Indica selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero varia values.) Variable overhead rate variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance