8-39 Flexible budgets, 4-variance analysis. (CMA, adapted) Wilson Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH). Wilson Products develops its manufacturing overhead rate from the cur- rent annual budget. The manufacturing overhead budget for 2017 is based on budgeted output of 672,000 units, requiring 3,360,000 DLH. The company is able to schedule production uniformly throughout the year. A total of 72,000 output units requiring 321,000 DLH was produced during May 2017. Manufacturing overhead (MOH) costs incurred for May amounted to $355,800. The actual costs, compared with the annual budget and 1/12 of the annual budget, are as follows: Annual Manufacturing Overhead Budget 2017 Per Total Amount Output Unit Per DLH Input Unit Monthly MOH Budget May 2017 Actual MOH Costs for May 2017 Variable MOH Indirect manufacturing labor $1,008,000 $1.50 $0.30 $ 84,000 $ 84,000 Supplies 672,000 1.00 0.20 56,000 117,000 Fixed MOH Supervision 571,200 0.85 0.17 47,600 41,000 Utilities 369,600 0.55 0.11 30,800 55,000 Depreciation 705,600 1.05 0.21 58,800 88,800 Total $3,326,400 $4.95 $0.99 $277,200 $355,800 Calculate the following amounts for Wilson 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). ASSIGNMENT MATERIAL 345 Required