Grant Manufacturing uses standard

 

costing. It allocates manufacturing overhead both variable and fixed to products on the basis of standard direct manufacturing laborhours DMLH Grant develops its manufacturing overhead rate from  

 

the current annual budget. The manufacturing overhead budget for is based on budgeted output

of units, requiring DMLH The company is able to schedule production uniformly

throughout the year.

A total of output units requiring DMLH was produced during August Manufacturing

overhead MOH costs incurred for August amounted to $ The actual costs, compared with the annual budget and of the annual budget, are as follows:

Annual Manufacturing Overhead Budget

Total

Amount

Per

Output

Unit

Per DMLH

Input Unit

Monthly MOH

Budget

August

Actual MOH

Costs for

August

Variable MOH

Indirect manufacturing labor $ $$$$

Supplies

Fixed MOH

Supervision

Utilities

Depreciation

Total $$$$$

Calculate the following amounts for Grant Manufacturing for August :

Total manufacturing overhead costs allocated

Variable manufacturing overhead spending variance

Fixed manufacturing overhead spending variance

Variable manufacturing overhead efficiency variance

Productionvolume variance

 

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