Morton Company's budgeted variable manufacturing overhead is $3.50 per direct labor-hour and its budgeted fixed manufacturing overhead is $400,000 per year. The company manufactures a single product whose standard direct labor-hours per unit is 2.2 hours. The standard direct labor wage rate is $25 per hour. The standards also allow 5 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 1 Assume that the company chooses 40,000 direct labor-hours as the denominator level of activity Compute the predetermined 4 Assume that the company year Required overhead rate, breaking it down into variable and fixed cost elements 2. Assume that the company overhead rate, breaking it down into variable and fixed cost elements. 3. Complete two standard cost cards as outlined below chooses 50000 direct labor-hours as the denominator level of activity, Compute the predetermined actually produces 21200 units and works 48.000 direct labor-hours during the year. Actual manufacturing overhead costs for the year are: Variable manufacturing overhead cost Fixed manufacturing overhead cost Total manufacturing overhead cost s 174,20e 575 , 400 a. Compute the standard direct labor-hours allowed for this year's production the conwys dn d ecttos thorma acivty) b. Complete the Manufacturing Overhead T-account below. Assume that es the denominator activity figure in computing predetermined overhead rates as you have done in () above. efficiency variances and tfappled overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume varlanices Complete this question by entering your answers in the tabs below Prey1 of E! Next Total nanufacturing overhead cost 575,4ee 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 40000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates, as you have done in (1) above c. Determine the cause of the underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume varlances. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48Req 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 (1) above Manufacturing Overhead Standard costs Appied costs Actual costs Overapplied overhead 575,400 Applied costs 575,400 K Req 4 Actual costs Applied costs Standard costs Prot Next Total nanufacturing overhead cost $ 575,400 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 ac as the denominator activity figure In computing predetermined overhead rates, as you have done in (1) above. c. Determine the cause of the underapplied or overapplied overhead for the year by computing the varlable overhead rate and efficiency variances and the fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Reg 4B Req 4C Determine the cause of the underapplied or overapplied overhead for the year by computing the variable overhead rate and efficlency variances and the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) ces Variable overhead rate variance Variable overhead efficiency variance Fixed overhead budget varnance Fixed overhead volume variance Underapplied overhead S 6,200 4 760 1,200 66,400 S 54 240 K Req 4B c Prey 1 of 1EE Next>