$.$ Morton Company's budgeted variable manufacturing overhead is $\backslash (\backslash$$ $4\mathrm{.}50\backslash )$ per direct labor$-$hour and its budgeted fixed manufacturing overhead is $\backslash$$$270,000$ per year.

The company manufactures a single product whose standard direct labor$-$hours per unit are $2$ hours. The standard direct labor wage rate is $\backslash (\backslash$$ $15\backslash )$ per hour. The standards also allow $4$ feet of raw material per unit at a standard cost of $\backslash (\backslash$$ $8\mathrm{.}75\backslash )$ per foot.

Although normal activity is $30,000$ direct labor$-$hours each year, the company expects to operate $40,000$ hours this year.

Required:

$1.$ Assume the company chooses $30,000$ direct labor$-$hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements.

$2.$ Assume the company chooses $40,000$ direct labor$-$hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements.

$3.$ Complete two standard cost cards for $30,000$ and $40,000$ DLHs$.$

$4.$ Assume the company actually produces $18,000$ units and works $38,000$ direct labor$-$hours. Actual manufacturing overhead costs for the year are:

a$.$ Compute the standard direct labor$-$hours allowed for this year's production.

b$.$ Complete the Manufacturing Overhead T$-$account below. Assume the company uses $30,000$ direct labor$-$hours $($normal activity$)$ as the denominator activity in computing predetermined overhead rates, as you have done Requirement $1.$

c$.$ Assume the company uses $30,000$ direct labor$-$hours $($normal activity$)$ as the denominator activity figure in computing predetermined overhead rates, as you have done Requirement $1.$ Calculate the following variances.

Complete this question by entering your answers in the tabs below.

Complete the Manufacturing Overhead T$-$account below. Assume the company uses $30,000$ direct labor$-$hours $($normal activity$)$ as the denominator activity in computing predetermined overhead rates, as you have done Requirement $1.$ Morton Company's budgeted variable manufacturing overhead is $\backslash (\backslash$$ $4\mathrm{.}50\backslash )$ per direct labor$-$hour and its budgeted fixed manufacturing overhead is $\backslash$$$270,000$ per year.

The company manufactures a single product whose standard direct labor$-$hours per unit are $2$ hours. The standard direct labor wage rate is $\backslash (\backslash$$ $15\backslash )$ per hour. The standards also allow $4$ feet of raw material per unit at a standard cost of $\backslash (\backslash$$ $8\mathrm{.}75\backslash )$ per foot.

Although normal activity is $30,000$ direct labor$-$hours each year, the company expects to operate $40,000$ hours this year.

Required:

$1.$ Assume the company chooses $30,000$ direct labor$-$hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements.

$2.$ Assume the company chooses $40,000$ direct labor$-$hours as the denominator level of activity. Compute the predetermined overhead rate, breaking it down into variable and fixed cost elements.

$3.$ Complete two standard cost cards for $30,000$ and $40,000$ DLHs$.$

$4.$ Assume the company actually produces $18,000$ units and works $38,000$ direct labor$-$hours. Actual manufacturing overhead costs for the year are:

$\backslash$begin$\{$tabular$\}\{$lr$\}$

Variable manufacturing overhead cost $\backslash \backslash$

Fixed manufacturing overhead cost & $\backslash$begin$\{$tabular$\}\{$r$\}$

$\backslash (\backslash$$ $174,800\backslash )\backslash \backslash$

$271,600$

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline Total manufacturing overhead cost & $\backslash (\backslash$$ $446,400\backslash )\backslash \backslash$

$\backslash$hline $\backslash$hline

$\backslash$end$\{$tabular$\}$

a$.$ Compute the standard direct labor$-$hours allowed for this year's production.

b$.$ Complete the Manufacturing Overhead T$-$account below. Assume the company uses $30,000$ direct labor$-$hours $($normal activity$)$ as the denominator activity in computing predetermined overhead rates, as you have done Requirement $1.$

c$.$ Assume the company uses $30,000$ direct labor$-$hours $($normal activity$)$ as the denominator activity figure in computing predetermined overhead rates, as you have done Requirement $1.$ Calculate the following variances.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $4$A

Required $4$B

Required $4$C

Assume the company uses $30,000$ direct labor$-$hours $($normal activity$)$ as the denominator activity figure in computing predetermined overhead rates, as you have done Requirement $1.$

Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance$).$ Input all amounts as positive values.

Show less $4$

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline Variable overhead rate variance & & $\backslash$multicolumn$\{1\}\{$l$|\}\{\}\backslash \backslash$

$\backslash$hline Variable overhead efficiency variance & & $\backslash \backslash$

$\backslash$hline Fixed overhead budget variance & & $\backslash \backslash$

$\backslash$hline Fixed overhead volume variance & & $\backslash \backslash$

$\backslash$hline & $\backslash (\backslash$$ $\backslash )$ & $0\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$