=+12-33 KK 4-variance analysis OBJECTIVE 5 Consider each of the following situations—cases A and B—independently. Data refers to operations for April 2014. For each situation, assume standard costing. Also assume the use of a flexible budget for control of variable and fixed manufacturing overhead based on machine-hours.

Chapter 12: Flexible budgets, overhead cost variances and management control 499 M12_HORN3377_02_LT_C12.indd 499 2/09/13 3:50 PM Cases A B 1 Fixed manufacturing overhead incurred $84 920 $23 180 2 Variable manufacturing overhead incurred $120 000 —

3 Denominator level in machine-hours — 1 000 4 Standard machine-hours allowed for actual output achieved 6 200 —

5 Fixed manufacturing overhead (per standard machine-hour) — —

Flexible-budget data:

6 Variable manufacturing overhead (per standard machine-hour) — $42.00 7 Budgeted fixed manufacturing overhead $88 200 $20 000 8 Budgeted variable manufacturing overheada — —

9 Total budgeted manufacturing overheada — —

Additional data:

10 Standard variable manufacturing overhead allocated $124 000 —

11 Standard fixed manufacturing overhead allocated $86 800 —

12 Production-volume variance — $4 000 F 13 Variable manufacturing overhead spending variance $4 600 F $2 282 F 14 Variable manufacturing overhead efficiency variance — $2 478 F 15 Fixed manufacturing overhead spending variance — —

16 Actual machine-hours used — —

a For standard machine-hours allowed for actual output produced.

Required Fill in the blanks under each case. (Hint: Prepare a worksheet similar to that in Figure 12-4, p. 482. Fill in the known amounts and then solve for the unknowns.)