Question
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.
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 $3.60 per direct labor-hour and the budgeted fixed manufacturing overhead is $1,140,000 per year.
The standard quantity of materials is 4 pounds per unit and the standard cost is $7.00 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.80 per hour.
The company planned to operate at a denominator activity level of 150,000 direct labor-hours and to produce 100,000 units of product during the most recent year. Actual activity and costs for the year were as follows:
Actual number of units produced | 120,000 | |
Actual direct labor-hours worked | 195,000 | |
Actual variable manufacturing overhead cost incurred | $ | 429,000 |
Actual fixed manufacturing overhead cost incurred | $ | 1,170,000 |
question: complete the following manufacturing overheat t-account for the year.
Req 1 Req 2 Req 3A Req 3B Req 4 Complete the following Manufacturing Overhead T-account for the year. Manufacturing Overhead Actual costs Applied costs of Req 3A Req 4 ) Actual costs Applied costs Standard costsStep by Step Solution
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