Problem 2: Standard Costing Morton Company's budgeted variable manufacturing overhead is $4.50 per direct labor-hour and its budgeted fixed manufacturing overhead is $270,000 per year. The company manufactures a single product whose standard direct labor-hours per unit is 2 hours. The standard direct labor wage rate is $15 per hour. The standards also allow 4 feet of raw material per unit at a standard cost of $8.75 per foot. Normal ("Denominator" activity is 30,000 direct labor-hours each year. These data are summarized in the standard cost card below: Denominator Activity: 30,000 DLHS Direct materials, 4 feet $8.75 per foot Direct labor, 2 DLHS $15 per DLH Variable overhead, 2 DLHs $4.50 per DLH $ 35.00 30.00 9.00 Fixed overhead, 2 DLHs $9.00 per DLH 18.00 Standard cost per unit Required: $ 92.00 1. On the answer sheet, assuming 30,000 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 the company actually produces 18,000 final units Purchases 70,000 ft of DM at $8.65 per ft. Places 68,400 feet of DM into production. Actually works 38,000 direct labor-hours at $14 per hour. Incurs the actual following MOH costs Variable manufacturing overhead cost $ 174,800 Fixed manufacturing overhead cost Total manufacturing overhead cost 271,600 $ 446,400 uses 30,000 direct labor-hours (normal activity) as the denominator activity figure in computing predetermined overhead rates. Compute the following Variances (show work and answers on the answers sheet) Direct Materials DI vaitance.