Problem 10A-8 Applying Overhead:; Overhead Variances [LO10-3, LO10-4] Lane Company manufactures a single product and applies overhead cost to that product using standard direct labor hours. The budgeted variable manufacturing overhead is $2 per direct labor hour and the budgeted fixed manufacturing overhead is $480 per year The standard quanthy of materials is 3 pounds per unit and the standard cost is $7 per pound. The standard direct labor hours per unit is 1.5 hours and the standard labor rate is $12 per hour. pany planned to operate at a denominator actlvity level of 60,000 direct labor hours and to produce 40,000 units of product during the most recent yeat. Actual activity and costs for the year were as follows: Actual number of units Actual direct labor hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred ced 65,000 s 123,500 s 483,e0e 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. ermine the reason for the underapplied or overapplied overhead from (3) above by computing the varlable overhead rate and efficiency varlances and the fixed overhead budget and volume variances. Complete this question by entering vour answers in the tahs helou