Kenneth was working away at his first attempt at variance analysis for his manufacturing company. He filled in variable-and fixed- MOH costs where he saw fit, before actually calculating the related price, efficiency, and volume variances. Since he was focusing on the overhead costs specifically, he made note of the allocation base being used, machine hours. Here is his work so far: Variable-MOH Fixed-MOH Actual Variable- MOH Cost $16,700 Fixed-MOH Master Budget $27,350 Variable-MOH Flexible Budget $15,450 Applied Fixed- MOH Cost $26,550 Applied Variable- MOH Cost Actual Fixed- MOH Cost $24,100 $15,450 Kenneth isn't sure if he put the right costs in the right places. There were also a couple of costs that he didn't include, because he wasn't sure if they belonged, as follows. Actual machine hours @ budgeted variable-MOH rate: $16,050 Flexible budget fixed-MOH cost: $27,350

Kenneth was working away at his first attempt at variance analysis for his manufacturing company. He filled in variable-and fixedMOH costs where he saw fit, before actually calculating the related price, efficiency, and volume variances. Since he was focusing on the overhead costs specifically, he made note of the allocation base being used, machine hours. Here is his work so far: Kenneth isn't sure if he put the right costs in the right places. There were also a couple of costs that he didn't include, because he wasn't sure if they belonged, as follows. Actual machine hours @ budgeted variable-MOH rate: $16,050 Flexible budget fixed-MOH cost: $27,350 Kenneth was working away at his first attempt at variance analysis for his manufacturing company. He filled in variable-and fixedMOH costs where he saw fit, before actually calculating the related price, efficiency, and volume variances. Since he was focusing on the overhead costs specifically, he made note of the allocation base being used, machine hours. Here is his work so far: Kenneth isn't sure if he put the right costs in the right places. There were also a couple of costs that be didnt include, because he wasn't sure if they belonged, as follows. Actual machine hours @ budgeted variable-MOH rate: $16,050 Flexible budget fixed MOH cost: $27,350 Using your corrected framework from part (a), determine the variable-MOH price and efficiency variances. Was variable-MOH under-or overapplied this year? By how much? Variable-MOH price variance Variable-MOH efficiency variance