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 $4.80 per standard direct labor-hour and fixed manufacturing overhead should be $2,112,000 per year.

Problem 11A-8 Applying Overhead; Overhead Variances DLO11-3, LO11-4] 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 $4.80 per standard direct labor-hour and fixed manufacturing overhead should be $2,112,000 per year The company's product requires 4 pounds of material that has a standard cost of$10.00 per pound and 1.5 hours of direct labor time that has a standard rate of $13.40 per hour. The company planned to operate at a denominator activity level of 240,000 direct labor-hours and to produce 160,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Number of units produced 192,000 Actual direct labor-hours worked 312,000 $873,600 Actual variable manufacturing overhead cost incurred $2,184,000 Actual fixed manufacturing overhead cost incurred Required: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements. (Round your answers to 2 decimal places.) Predetermined overhead 13.60 per rate DLH 4.80, per Variable rate 8.80, per DLH Fixed rate 2. Prepare a standard cost card for the company's product. (Round your answers to 2 decimal places.)