Clean - In - Up, inc, is a manufacturer of vacuums and uses standard costing Manufacturing overthead (both variable and foced) is allocatod to products on the basis of budgeted machino-hours. In 2020, budgeted fixed manufacturing overhead cost was $21,000,000. Budgoted variable manufacturing overhead was $12 per machine-hour, The denominator levvel was 1,000,000 machine hours. Read the requitements. Requirement 1. Prepare a graph for fixed manufacturing overhead. The graph shouid display how Clean - It - Up, Inc's fixed manufacturing overhead costs wal be depicted for the purposes of (a) planning and control and (b) inventory costing. (Enlarpe the graph and use the fool line button displayed to draw the graph.) Requiremens 2. Suppene that 1,150,000 machine-hours were allowed for actual ousput produced in 2020, but 1, 100,000 actual machine-hourn ware used. Actual manifacturing owerhead spending and production-volume variances. (a) Begin by calcudating the folowing amounts for the variable manufacturing overhead. Requirements 1. Prepare a graph for fixed manufacturing overhead. The graph should display how Clean - It - Up. Inc.'s fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing. 2. Suppose that 1,150,000 machine-hours were allowed for actual output produced in 2020 , but 1,100,000 actual machine-hours were used. Actual manufacturing overhead was $12,650,000, variable, and $20,900,000, fixed. Compute (a) the variable manufacturing overhead spending and efficiency variances and (b) the fixed manufacturing overhead spending and production-volume variances. 3. What is the amount of the under- or overallocated variable manufacturing overhead and the under- or overallocated fixed manufacturing overhead? 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 fixed manufacturing overhead? 4. Suppose the denominator level was 750,000 rather than 1,000,000 machine-hours. What variances in requirement 2 would be affected? Recompute them. Clean - In - Up, inc, is a manufacturer of vacuums and uses standard costing Manufacturing overthead (both variable and foced) is allocatod to products on the basis of budgeted machino-hours. In 2020, budgeted fixed manufacturing overhead cost was $21,000,000. Budgoted variable manufacturing overhead was $12 per machine-hour, The denominator levvel was 1,000,000 machine hours. Read the requitements. Requirement 1. Prepare a graph for fixed manufacturing overhead. The graph shouid display how Clean - It - Up, Inc's fixed manufacturing overhead costs wal be depicted for the purposes of (a) planning and control and (b) inventory costing. (Enlarpe the graph and use the fool line button displayed to draw the graph.) Requiremens 2. Suppene that 1,150,000 machine-hours were allowed for actual ousput produced in 2020, but 1, 100,000 actual machine-hourn ware used. Actual manifacturing owerhead spending and production-volume variances. (a) Begin by calcudating the folowing amounts for the variable manufacturing overhead. Requirements 1. Prepare a graph for fixed manufacturing overhead. The graph should display how Clean - It - Up. Inc.'s fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing. 2. Suppose that 1,150,000 machine-hours were allowed for actual output produced in 2020 , but 1,100,000 actual machine-hours were used. Actual manufacturing overhead was $12,650,000, variable, and $20,900,000, fixed. Compute (a) the variable manufacturing overhead spending and efficiency variances and (b) the fixed manufacturing overhead spending and production-volume variances. 3. What is the amount of the under- or overallocated variable manufacturing overhead and the under- or overallocated fixed manufacturing overhead? 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 fixed manufacturing overhead? 4. Suppose the denominator level was 750,000 rather than 1,000,000 machine-hours. What variances in requirement 2 would be affected? Recompute them
