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 varlable manufacturing overhead Is $3.60 per direct labor-hour and the budgeted fixed manufacturing overhead Is $1,140,000 per year. The standard quantity of materials Is 4 pounds per unit and the standard cost is $7.00 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.80 per hour. The company planned to operate at a denominator activity level of 150,000 direct labor-hours and to produce 100,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual number of units produced 120, eee 195, e0e $ 429,000 $1,170, eee Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred Requlred: 1. Compute the predetermined overhead rate for the year. Break the rate down Into varlable 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 varlable overhead rate and efficlency varlances and the fixed overhead budget and volume varlances. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 38 Reg 4 Req 2 Req 3A Complete the following Manufacturing Overhead T-account for the year. Manufacturing Overhead Standard costs 1,599,000 O 2,016,000 8 3,615,000 Actual costs Applied costs Overapplied overhead < Req 3A Req 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 varlable manufacturing overhead Is $3.60 per direct labor-hour and the budgeted fixed manufacturing overhead Is $1,140,000 per year. The standard quantity of materials Is 4 pounds per unit and the standard cost is $7.00 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.80 per hour. The company planned to operate at a denominator activity level of 150,000 direct labor-hours and to produce 100,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual number of units produced 120, eee 195, e0e $ 429,000 $1,170, eee Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred Requlred: 1. Compute the predetermined overhead rate for the year. Break the rate down Into varlable 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 varlable overhead rate and efficlency varlances and the fixed overhead budget and volume varlances. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 38 Reg 4 Req 2 Req 3A Complete the following Manufacturing Overhead T-account for the year. Manufacturing Overhead Standard costs 1,599,000 O 2,016,000 8 3,615,000 Actual costs Applied costs Overapplied overhead < Req 3A Req 4 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me with #3B and #4. Thank you so much!
Transcribed Image Text:Lane Company manufactures a single product that requlres a great deal of hand labor. Overhead cost Is applied on the basis of
standard direct labor-hours. The budgeted varlable manufacturing overhead Is $3.60 per direct labor-hour and the budgeted fixed
manufacturing overhead is $1,140,00õ per year.
The standard quantity of materials Is 4 pounds per unit and the standard cost Is $7.00 per pound. The standard direct labor-hours per
unit is 1.5 hours and the standard labor rate is $12.80 per hour.
The company planned to operate at a denominator activity level of 150,000 direct labor-hours and to produce 100,000 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
120, eee
195,e00
$ 429,000
$1,170,e00
Actual variable manufacturing overhead cost incurred
Actual fixed manufacturing overhead cost incurred
Required:
1. Compute the predetermined overhead rate for the year. Break the rate down Into varlable 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 underapplled or overappled overhead for the year by computing the varlable overhead rate and
efficiency varlances and the fixed overhead budget and volume varlances.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2
Req 3A
Req 38
Req 4
Complete the following Manufacturing Overhead T-account for the year.
Manufacturing Overhead
Standard costs
Actual costs
1,599,000
Applied costs
Overapplied
overhead
2,016,000
3,615,000
< Req 3A
Req 4 >
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