Problem 9A-8 Applying Overhead; Overhead Vorlonces [LO9-6, LO9-7) Lane Company manufactures a single product and applies overhead cost to that product using standard direct labor-hours. The budgeted variable manufacturing overhead is $5.40 per direct labor-hour and the budgeted fixed manufacturing overhead is $2.679,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $11.50 per pound. The standard direct labor-hours per unit is 15 hours and the standard labor rate is $13.70 per hour The company planned to operate at a denominator activity level of 285.000 direct labor hours and to produce 190,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Deferences Actual number of units produced 228,000 Actual direct labor-hours worked 370.500 Actual variable manufacturing overhead cost incurred 51,148,550 Actual fixed manufacturing overhead cost incurred $2,964,000 Required: 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. 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 cencyances and thered overhead budget and v a riances