Johnson

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

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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 DLH		Actual DLH	=	Budgeted hours per unit
			=

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

					=	Total MOH costs allocated
					=

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		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

Johnson

Products for May

2017.

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