13-33 Flexible budgets, integrated variance analysis. (CMA, adapted) Clarke Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH). Clarke develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2013 is based on budgeted output of 636,000 units, requiring 3,816,000 DLH. The company is able to schedule production uniformly throughout the year. A total of 74,000 output units requiring 318,000 DLH was produced during May 2013. Manufacturing overhead (MOH) costs incurred for May amounted to $340,200. The actual costs, compared with the annual budget and 1/12 of the annual budget, are: Annual Manufacturing Overhead Budget for 2013 Total Amount Per Output Unit Per DLH Input Unit Monthly MOH Budget for May 2013 Actual MOH Costs for May 2013 Variable MOH Indirect manufacturing labor $ 381,600 $0.60 $0.10 $31,800 $31,800 Supplies 763,200 1.20 0.20 63,600 113,000 Fixed MOH Supervision 610,560 0.96 0.16 50,880 42,000 Utilities 457,920 0.72 0.12 38,160 58,000 Depreciation Total 1,144,800 1.80 0.30 95,400 95,400 $3,358,080 $5.28 $0.88 $279,840 $340,200 Required Calculate the following amounts for Clarke Products for May 2013: 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). boulays 13.34