XYZ Company rses a standard cost system and sets predetermined overhead rates on the basis of direct labor hours. The standad cost card for the company's onlyproduct below

During the year:

a. XYZ Company manufactured 30,000 units of product.

b. 128,000 kilograms of raw materials purchased at 17.10 dollar per kilogram.

c- There were 23,000 kilogams of 90 materials were on hand to start the year and 32,000 kilograms of materials were left in the warehouse at the end of the year.

d. 90,000 direct labor hours worked in producon at $15.60 per hour.

e. Denominator activity set at the beginning of the year 70,000 direct labor hours. $350,000 variable and $840,000 fixed overhead costs budgeted ate denominator activity,level.

f, 432,000 actual variable and $847,200 acfual fixed overhead cots incurred in production during the year.

Questions

a) Calculate the variable and fixed elements of the predetermined overhead rate and redo the standard cost card in a clear format.

b)Calculate and analyze the direct materials, direct labor, variable and fixed overhead variances for the year.

c) Determine the amount ofunderapplied or overapplied overhead during the year.

Direct Materials 4.00 kilograms at $16.90 per kilogram Direct Labor 2.80 hours at $16.00 per direct labor hour Man. Overhead 106.25% of direct labor cost Standard Cost per Unit $ 67.70 44.80 47.60 $ 160.00