Problem $10$A$-8($Algo$)$ Applying Overhead; Overhead Variances $[$LO$10-3,$ LO$10-4]$ Lane Company manufactures a single product requiring a great deal of hand labor. Overhead cost is applied based on standard direct labor$-$hours. The budgeted variable manufacturing overhead is $$5\mathrm{.}20$ per direct labor$-$hour and the budgeted fixed manufacturing overhead is $$2,484,000$ per year. The standard quantity of materials is $4$ pounds per unit and the standard cost is $$11\mathrm{.}00$ per pound. The standard direct labor$-$hours per unit is $1\mathrm{.}5$ hours and the standard labor rate is $$13\mathrm{.}60$ per hour. The company planned to operate at a denominator activity level of $270,000$ direct labor$-$hours and to produce $180,000$ units during the most recent year. Actual activity and costs for the year were as follows: Actual number of units produced $216,000$ Actual direct labor$-$hours worked $351,000$ Actual variable manufacturing overhead cost incurred $ $1,053,000$ Actual fixed manufacturing overhead cost incurred $ $2,808,000$ Required: $1.$ Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements. $2.$ Prepare a standard cost card for the company$$s product. $3$a$.$ Compute the standard direct labor$-$hours allowed for the year$$s production. $3$b$.$ Complete the following Manufacturing Overhead T$-$account for the year. $4.$ Determine the reason for any underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances.