Morton Company's budgeted variable manufacturing overhead is $2.00 per direct labor-hour and its budgeted fixed manufacturing overhead is $420,000 per year The company manufactures a single product whose standard direct labor-hours per unit is 2.0 hours. The standard direct labor wage rate is $27 per hour. The standards also allow 2 feet of raw material per unit at a standard cost of $5 per foot Although normal activity is 50,000 direct labor-hours each year, the company expects to operate at a 40,000-hour level of activity this year Required: Assume that the company chooses 40,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements. 2. Assume that the company chooses 50,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements. 3. Complete two standard cost cards for 40,000 & 50,00O DLHS. 4. Assume that the company actually produces 22,300 units and works 46,000 direct labor-hours during the year. Actual manufacturing overhead costs for the year are Variable manufacturing overhead cost Fixed manu facturing overhead cost $101,200 425,000 526,200 Total manufacturing overhead cost a. Compute the standard direct labor-hours allowed for this year's production. b. Complete the Manufacturing Overhead T-account below. Assume that the company uses 40,000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates, as you have done in (1) above. c. Assume that the company uses 40,000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates, as you have done in requirement (1). a. Compute the standard direct labor-hours allowed for this year's production. b. Complete the Manufacturing Overhead T-account below. Assume that the company uses 40,000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates, as you have done in (1) above. c. Assume that the company uses 40,000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates, as you have done in requirement (1). Complete this question by entering your answers in the tabs below. Req 3 Req 1 Req 2 Req 4A Req 4B Req 4C Assume that the company chooses 40,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Predetermined overhead rate Variable element per DLH per DLH Fixed element per DLH Req 2 Req 1 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Assume that the company chooses 50,000 direct labor-hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Predetermined overhead rate per DLH Variable element Fixed element per DLH per DLH Req 1 Req 3 Req 3 Req 4B Req 1 Req 2 Req 4A Req 4C Complete two standard cost cards Complete two standard cost cards for 40,000 & 50,000 DLHS. (Round y decimal places.) Denominator Activity: 40,000 DLHS 50,000 DLHS Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Req 2 Req 4A Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Compute the standard direct labor-hours allowed for this year's production Standard hours allowed for this year's production Req 3 Req 4B Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Req 4C Complete the Manufacturing Overhead T-account below. Assume that the company uses 40,000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates, as you have done in requirement (1) Manufacturing Overhead Req 4A Req 4C Complete this question by entering your answers in the tabs below. Req 2 Req 3 Req 4A Req 4B Req 1 Req 4C as the denominator activity figure in computing as you have done in requirement (1). (Indicate the effect of each variance by selecting "F" for Assume that the company uses 40,000 direct labor-hours (normal activity) predetermined overhead rates, favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Variable overhead rate variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance overhead Reg 4C Req 4B
