Problem 10A-8 Applying Overhead; Overhead Variances (LO10-3, LO10-4) 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. The budgeted variable manufacturing overhead is $2.60 per direct labor-hour and the budgeted fixed manufacturing overhead is $495,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $4.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.30 per hour. The company planned to operate at a denominator activity level of 75,000 direct labor-hours and to produce 50,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual number of units produced Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred 60,000 97,500 $ 165,750 $ 536,250 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 3a. Compute the standard direct labor-hours allowed for the year's production 3b. 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. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 35 Reg 4 Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements. (Round your RCLUB girect Labor-nours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred 7,00 $ 165,758 $ 536,250 Required: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed eler 2. Prepare a standard cost card for the company's product. 3a. Compute the standard direct labor-hours allowed for the year's production. 3b. 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 varia efficiency variances and the fixed overhead budget and volume variances. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3A Req 3B Reg 4 Compite the predetermined overhead rate for the year. Break the rate down into variable and fixed elements. (F answers to 2 decimal places.) Predetermined overhead rate per DLH Variable rate per OLH Fixed rate per DLH og 2 > Allut variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred , 9 $ 165,750 $ 536,25 Required: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixe 2. Prepare a standard cost card for the company's product. 3a. Compute the standard direct labor-hours allowed for the year's production. 3b. 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 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 Reg 3B Re 4 Prepare a standard cost card for the company's product. (Round your answers to 2 decimal places.) Direct matenals pounds at per pound per DLH Direct labor DLHs at Vanable overhead per DLH DLHS at DLHs at Fixed overhead per DLH Standard cost per unit Actual number of units produced Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred 60,000 97,500 $ 165,758 $ 536,258 Required: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed 2. Prepare a standard cost card for the company's product. 3a. Compute the standard direct labor-hours allowed for the year's production. 3b. 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 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 Reg 38 Req 4 Compute the standard direct labor-hours allowed for the year's production. Standard direct labor hours Req2 Reg 38 Actual number of units produced Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred 60,000 97,500 $ 165,750 $ 536,250 Required: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixe 2. Prepare a standard cost card for the company's product. 3a. Compute the standard direct labor-hours allowed for the year's production. 3b. 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 ti 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 Red 3B Reg 4 Complete the following Manufacturing Overhead T-account for the year. Manufacturing Overhead Ulmy verhead cost incurred Actual fixed manufacturing overhead cost incurred $ 165,750 $ 536, 258 Required: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable and 2. Prepare a standard cost card for the company's product. 3a. Compute the standard direct labor-hours allowed for the year's production. 3b. 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 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 Req 3B Req 4 Determine the reason for any underapplied or overapplied overhead for the year by computing the variat efficiency variances and the fixed overhead budget and volume variances. (Indicate the effect of each for favorable, "U" for unfavorable, and None for no effect (I.e., zero variance). Input all amounts as Variable overhead rate variance Variable overhead efficiency variance Fixed overhead budget Variance Fixed overhead volume variance Reg 36
