Question

21 Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basisRequirea: 1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements. 2. P

0 0
Add a comment Improve this question Transcribed image text
Answer #1
Part-1
Predetermined Overhead rate = $3.80 + $7.80 = $11.60 per DLH
Variable overhead rate = $3.80 per DLH
Fixed overhead rate = $1287000/ 165000= $7.80 per DLH
2) Standard Cost Card :
Direct Mateial 4 Pounds at $7.50 Per pound $30.00
Direct Labour 1.5 DLHs at $12.90 per DLH $19.35
Variable Overhead 1.5 DLHs at $3.80 per DLH $5.70
Fixed Overhead 1.5 DLHs at $7.80 per DLH $11.70
Standard cost per unit $66.75
3a) Standard DLH allowed for the year = 132000 units * 1.5 DLH per unit = 198000 DLH
3b) Manufacturing Overhead :
Variable cost $493,350.00 WIP (198000*11.60) $2,296,800.00
Fixed cost $1,320,000.00
Over-applied (BF) $483,450.00
Total $2,296,800.00 Total $2,296,800.00
Variable OH Rate Variance= ( SR-AR)X AH
($3.80-$2.30)X214500=$321750 Favourable
Actual Rate= 493350/214500=$2.30
Variable OH Efficiency Variance= ( SHX AQ-Ahour)X SR
(1.5 Hour X 132000-214500)X$3.80= $62700 Unfavourable
-1
Fixed verhead Budget Variance= Budgeted Oh- Actual Overhead
$1287000-$1320000=$33000 Unfavourable
Fixed Overhead Volume Variance= Applied Overhead - Actual Overhead
(1.5 HourX132000X$7.80)-$1320000=$224400 Favourable
Add a comment
Know the answer?
Add Answer to:
21 Lane Company manufactures a single product that requires a great deal of hand labor. Overhead...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 21 Lane Company manufactures a single product that requires a great deal of hand labor. Overhead...

    21 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 variable manufacturing overhead is $3.80 per direct labor-hour and the budgeted fixed manufacturing overhead is $1,287,000 per year. 10 points The standard quantity of materials is 4 pounds per unit and the standard cost is $7.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate...

  • Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost...

    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 variable manufacturing overhead is $5.60 per direct labor-hour and the budgeted fixed manufacturing overhead is $2,880,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $12.00 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $13.80 per...

  • Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied...

    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 variable manufacturing overhead is $4.60 per direct labor-hour and the budgeted fixed manufacturing overhead is $1.935,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $9.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $13.30 per...

  • Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost...

    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 variable manufacturing overhead is $2.60 per direct labor-hour and the budgeted fixed manufacturing overhead is $495,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $4.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.30 per...

  • Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost...

    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 variable manufacturing overhead is $5.00 per direct labor-hour and the budgeted fixed manufacturing overhead is $2,295,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $10.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $13.50 per...

  • Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost...

    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 variable manufacturing overhead is $2.20 per direct labor-hour and the budgeted fixed Emanufacturing overhead is $279,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $3.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.10 per...

  • Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost...

    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 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 1.5 hours and the standard labor rate is $13.70 per...

  • Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost...

    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 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 1.5 hours and the standard labor rate is $13.70 per...

  • Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost...

    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 variable manufacturing overhead is $2.60 per direct labor-hour and the budgeted fixed manufacturing overhead is $495,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $4.50 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.30 per...

  • Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost...

    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 variable manufacturing overhead is $2.80 per direct labor-hour and the budgeted fixed manufacturing overhead is $612,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $5.00 per pound. The standard direct labor-hours per unit is 1.5 hours and the standard labor rate is $12.40 per...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT