E8-26

ComplexChemComplexChem,

Inc., produces chemicals for large biotech companies. It has the following data for manufacturing overhead costs during August

20172017:

Variable

Fixed

Actual costs incurred	$30,500	$15,500
Costs allocated to products	$32,000	$14,200
Flexible budget		$13,200
Actual input x budgeted rate	$32,200

Requirement

Fill in the blanks. Use F for favorable and U for unfavorable:

(If no variance exists leave the dollar value blank. Label the variance as favorable (F), unfavorable (U) or never a variance (N).)

Variable

(1)

Spending variance

(2)

Efficiency variance

(3)

Production-volume variance

(4)

Flexible-budget variance

(5)

Underallocated(overallocated) manufacturing overhead

VARIABLE

FIXED

-1

Spending variance

$

$

-2

Efficiency variance

-3

Production-volume variance

-4

Flexible-budget variance

-5

Underallocated (overallocated)

manufacturing overhead