Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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. Variable manufacturing overhead should be $3.60 per standard direct labor-hour and fixed manufacturing overhead should be $1,140,000 per year.

The companys product requires 4 pounds of material that has a standard cost of $7.00 per pound and 1.5 hours of direct labor time that has a standard rate of $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:

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

Required:

(I already figured out the answers to Number 1, but will need help with the rest).

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing

Authors: Knapp, Rittenberg

1st Edition

1133731244, 978-1133731245

More Books

Students also viewed these Accounting questions