A. Question 1, Problem 8-28 (similar to) Part 1 of 10 K Suction Inc. is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2022, budgeted fixed manufacturing overhead (FMOH) cost was $16,000,000. Budgeted VMOH was $12 per machine-hour. The denominator level was 1,000,000 machine-hours. Required Requirement 1. Prepare a graph for FMOH. The graph should display how $ction Inc.'s FMOH costs will be depicted for the purposes of (a) planning and control and (b) inventory costing. Choose the correct graph below. OH Costs ($) FMOH Costs 21,000,000- O B. OH Costs ($) FMOH Costs 21,000,000- HW Score: 0%, 0 of 2 points O Points: 0 of 1 O C. OH Costs ($) FMOH Costs 21,000,000- Clear all O D. OH Costs ($) FMOH Costs Save 21,000,000+ Check answer

Suction Inc, is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2022, budgeted fixed manufacturing overhead (FMOH) cost was $16,000,000. Budgeted VMOH was $12 per machine-hour. The denominator level was 1,000,000 machine-hours: Required Requirement 1. Prepare a graph for FMOH. The graph should display how Shetion Inc.'s FMOH costs will be depicted for the purposes of (a) planning and control and (b) inventory costing. Choose the correct graph below. A. B. c. D. 1. Prepare a graph for FMOH. The graph should display how Suction Inc.'s FMOH costs will be depicted for the purposes of (a) planning and control and (b) inventory costing. 2. Suppose that 1,075,000 machine-hours were allowed for actual output produced in 2022, but 1,000,000 actual machine-hours were used. Actual manufacturing overhead was $11,500,000, variable, and $15,925,000, fixed. Calculate (a) the VMOH rate and efficiency variances and (b) the FMOH rate and production-volume variances. 3. What is the amount of the under-or overallocated VMOH and the under- or overallocated FMOH? Why are the flexible-budget variance and the under- or overallocated overhead amount always the same for variable manufacturing overhead but rarely the same for FMOH ? 4. Suppose the denominator level was 800,000 rather than 1,000,000 machine-hours. What variances in requirement 2 would be affocted? Recalculate them. Suction Inc, is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2022, budgeted fixed manufacturing overhead (FMOH) cost was $16,000,000. Budgeted VMOH was $12 per machine-hour. The denominator level was 1,000,000 machine-hours: Required Requirement 1. Prepare a graph for FMOH. The graph should display how Shetion Inc.'s FMOH costs will be depicted for the purposes of (a) planning and control and (b) inventory costing. Choose the correct graph below. A. B. c. D. 1. Prepare a graph for FMOH. The graph should display how Suction Inc.'s FMOH costs will be depicted for the purposes of (a) planning and control and (b) inventory costing. 2. Suppose that 1,075,000 machine-hours were allowed for actual output produced in 2022, but 1,000,000 actual machine-hours were used. Actual manufacturing overhead was $11,500,000, variable, and $15,925,000, fixed. Calculate (a) the VMOH rate and efficiency variances and (b) the FMOH rate and production-volume variances. 3. What is the amount of the under-or overallocated VMOH and the under- or overallocated FMOH? Why are the flexible-budget variance and the under- or overallocated overhead amount always the same for variable manufacturing overhead but rarely the same for FMOH ? 4. Suppose the denominator level was 800,000 rather than 1,000,000 machine-hours. What variances in requirement 2 would be affocted? Recalculate them