morton companys variable budgeted variable overhead is $2.5 per direct labor hour

Due April 10 6 Help Save Check The company manufactures a single product whose standard direct labor-hours per unit is 3.5 hours. The standard direct labor wage rate is $20 per hour. The standards also allow 4 feet of raw material per unit at a standard cost of $4 per foot. Although normal activity is 75,000 direct labor-hours each year, the company expects to operate at a 60,000-hour level of activity this year. Required: 1. Assume that the company chooses 60,000 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 that the company chooses 75,000 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 60,000 & 75.000 DLHs 4. Assume that the company actually produces 19,000 units and works 67,000 direct labor hours during the year. Actual manufacturing Overhead costs for the year are as follows: 158.900 Variable manufacturing overhead Cost Fixed manufacturing overhead cost Total manufacturing overhead cost 335,600 $504, see a. Compute the standard direct labor-hours allowed for this year's production b. Complete the Manufacturing Overhead T-account below. Assume that the company uses 60.000 direct labor hours normal activity