Annual Manufacturing Overhead Budget 2014
		Per	Per DLH	Monthly	Actual MOH
	Total	Output	Input	MOH Budget	Costs for
	Amount	Unit	Unit	May 2014	May 2014
Variable MOH
Indirect manufacturing labor	$1,188,000	$1.80	$0.30	$99,000	$99,000
Supplies	792,000	1.20	0.20	66,000	117,000
Fixed MOH
Supervision	594,000	0.90	0.15	49,500	46,000
Utilities	475,200	0.72	0.12	39,600	59,000
Depreciation	950,400	1.44	0.24	79,200	79,200
Total	$3,999,600	$6.06	$1.01	$333,300	$400,200

Jackson

Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH).

Jackson

Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for

2014

is based on budgeted output of

660 comma 000

units, requiring

3 comma 960 comma 000

DLH. The company is able to schedule production uniformly thorughout the year. A total of

75 comma 000

output units requiring

323 comma 000

DLH was produced during May

2014

.

Manufacturing overhead (MOH) costs incurred for May amounted to

$ 400 comma 200

.

The actual costs, compared with the annual budget and 1/12 of the annual budget, are as follows:

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(Click the icon to view the data.) Read the requirement

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.

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
	/		=

Now calculate the total manufacturing overhead (MOH) costs allocated. Determine the formula, then complete the calculation.

	x		x		=	Total MOH costs allocated
	x		x		=

For items 2 through 5, complete the following tables before calculating the remaining amounts in the requirement. Complete the table for variable MOH.

		Actual input
	Actual costs	x	Flexible	Allocated
	incurred	budgeted rate	budget	overhead
Variable MOH

Next complete the table for fixed MOH.

		Same budgeted
		lump sum
	Actual costs	regardless of	Flexible	Allocated
	incurred	output level	budget	overhead
Fixed MOH

Now calculate the remaining listed

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amounts for

Jackson

Products for May

2014

.

Be sure to identify each variance as favorable (F) or unfavorable (U).

2.

The variable manufacturing overhead spending variance is

3.

The fixed manufacturing overhead spending variance is

4.

The variable manufacturing overhead efficiency variance is

5.

The production-volume variance is