| 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 |
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 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 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 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 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 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 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 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 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 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
manufacturing 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...