Question

for the T char please pick a label from the 3 names listed. this applies to the first 3 rows in the first column (the names are blocking it in the picture) and the first 3 rows in the last column. thank you!

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. 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 is $12.90 per hour The company planned to operate at a denominator activity level of 165,000 direct labor-hours and to produce 110,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual number of units produced 132,000 214,500 $ 493,350 Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred $1,320,000 3b. Complete the following Manufacturing Overhead T-account for the year. Req 3B Complete the following Manufacturing Overhead T-account for the year. Manufacturing Overhead danntn Actual costs Applied costs Req 3A Req 4 Standard costs

Answer 1

Solution:

F Computation of Predetermined overhead rate - Lane Company Particulars Amount Budgeted variable manufacturing overhead ($3.80*165000) $627,000 Budgeted fixed manufacturing overhead $1,287,000 10 11 12 Total Manufacturing overhead Budgeted direct labor hours Predetermined overhead rate $1,914,000 165000 $11.60 13 14 15 $3.80 Less: Variable overhead rate (Per direct labor hour) Fixed manufacturing overhead rate (per direct labor hour) $7.80 17 -161 (7) Sheet832 Sheet834 Sheet836 Sheet161 (8) Sheet743 (2) Sheet26 (19) Sheet843

o solution 3b: Particulars Actual costs (493350+1320000) Manufacturing Overhead Debit Particulars Credit $1,813,350 $2,296,800 Applied costs (132000*1.5*$11.60) 11 12 Overapplied overhead $483,450 13 14 15 Total $2,296,800 $2,296,800 Total 17 18 19 20 21 -161 (7) Sheet832 ) Sheet834 Sheet836 Sheet161 (8) Sheet743 (2) Sheet26 (19) Sheet843