Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1 P8-39 (similar to) Question Help The actual costs, compared with the annual budget and 1/12 of the annual budget, are as follows: (Click the
1
P8-39 (similar to) Question Help The actual costs, compared with the annual budget and 1/12 of the annual budget, are as follows: (Click the icon to view the data.) Read the requirement. Turner Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH). (Click the icon to view additional information.) 1. Calculate total manufacturing overhead costs allocated Begin by computing the budgeted hours per unit. Determine the formula, then compute the amount. Budgeted hours per unit = Actual DLH Actual units -Budgeted DLH Budgeted units Annual Manufacturing Overhead Budget 2017 Per Per DLH Monthly Actual MOH Total Outu nput MOH Budget Costs for May 2017 Amount Unit Unit May 2017 Variable MOH 29,000 S 58,000 348,000 S 0.50 S 0.10 S 29,000 Indirect manufacturing labor Supplies 696,000 1.00 0.20 118,000 Fixed MOH 556,800 0.80 17,600 0.60 044,0001.50 0.16 0.12 0.30 46,400 34,800 87,000 255,200 S 41,000 56,000 87,000 331,000 Utilities Depreciation S 3,062,400 S 4.40 $ 0.88 $ Total Requirement More Info Calculate the following amounts for Turner Products for May 2017 1. Total manufacturing overhead costs allocated 2. Variable manufacturing overhead spending variance 3. Fixed manufacturing overhead spending variance 4. Variable manufacturing overhead efficiency variance 5. Production-volume variance Be sure to identify each variance as favorable (F) or unfavorable (U) Turner Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2017 is based on budgeted output of 696,000 units, requiring 3,480,000 DLH. The company is able to schedule production uniformly thorughout the year. A total of 67,000 output units requiring 323,000 DLH was produced during May 2017. Manufacturing overhead (MOH) costs incurred for May amounted to $331,000 Print Done Print DoneStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started