Lane Company manufactures a single product that requires a great deal of hand labor. Overhead...
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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. Variable manufacturing overhead should be $3.80 per standard direct labor-hour and fixed manufacturing overhead should be $1,287,000 per year.
The companys product requires 4 pounds of material that has a standard cost of $7.50 per pound and 1.5 hours of direct labor time that has a standard rate of $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:
Complete the following Manufacturing Overhead T-account for the year:
* Need help finishing the table. Thanks.
Number of units produced Actual direct labor-hours worked Actual variable manufacturing overhead cost incurred Actual fixed manufacturing overhead cost incurred 132,000 214,500 $493,350 $1,320,000 Manufacturing Overhead Actual costs Applied costs 0 Overapplied overhead
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