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 $2.40 per standard direct labor-hour and fixed manufacturing overhead should be $384,000 per year. The company's product requires 4 pounds of material that has a standard cost of $4.00 per pound and 1.5 hours of direct labor time that has a standard rate of $12.20 per hour. The company planned to operate at a denominator activity level of 60,000 direct labor-hours and to produce 40,000 units of product during the most recent year. Actual activity and costs for the year were as follows:Number of units produced 48,000Actual direct labor-hours worked 78,000Actual variable manufacturing overhead cost incurred $124,800Actual fixed manufacturing overhead cost incurred $429,000Required:1. Compute the predetermined overhead rate for the year. Break the rate down into variable and fixed elements.2. Prepare a standard cost card for the company's product.3a. Compute the standard direct labor-hours allowed for the year's production.3b. Complete the following Manufacturing Overhead T-accounts for the year: Manufacturing Overhead, Actual costs, Applied costs, and Overapplied overhead.