Nolton Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the
Question:
A total of 66,000 output units requiring 315,000 DMLH was produced during May 2015. Manufacturing overhead (MOH) costs incurred for May amounted to $375,000. The actual costs, compared with the annual budget and 112 of the annual budget, are as follows:
Required
Calculate the following amounts for Nolton Products for May 2015:
1. Total manufacturing overhead costs allocated.
2. Variable manufacturing overhead rate variance.
3. Fixed manufacturing overhead rate variance.
4. Variable manufacturing overhead efficiency variance.
5. Production-volume variance.
Be sure to identify each variance as favourable (F) or unfavourable (U).
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133138443
7th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham
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