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