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Problem 9A-8 Applying Overhead; Overhead Vorlonces [LO9-6, LO9-7) Lane Company manufactures a single product and applies over
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Answer #1
1)
predetermined overhead rate 14.8
variable rate 5.4
fixed rate (2,679,000/285000) 9.4
2)
Direct materials 4 pounds at 11.5 per pound 46
Direct labor 1.5 DLH'S 13.7 per DLH 20.55
Variable overhead 1.5 DLH'S at 5.4 per DLH 8.1
Fixed overhead 1.5 DLH'Sat 9.4 per DLH 14.1
Standard cost per unit 88.75
3)
Standard direct labor hours allowed for the years production=
Actual units produced *Direct labor hr per unit
228000*1.5
342000
3b)
Manufacturing overhead T-Account
Actual costs 4112550 Applied costs (342000*14.8) 5061600
overhead overapplied 949050
4)
Variable overhead rate variance = (AR- Std rate)*AH
                                                           =(1,148,550 - 370500*5.4)
852150 F
Variable overhead efficiency variance = (AH-SH)*SR
                                                                     = (370,500-342000)*5.4
153900 U
Fixed overhead budget variance = actual overhead - budgeted oveerhead
2,964,000-2,679,000
285000 U
fixed overhead volume variance= actual output*fixed overhead rate per unit-budgeted overhead
228000*14.1-2,679,000
535,800 F
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