Manufacturing overhead variance illustration The following data are for April 2017, produced and sold 10,000 jackets: Actual ResultFlexible-Budget Amount Output units (jackets) 10,000 10,000 Machine-hours per output unit 0.45 0.40 Machine-hours 4,500 4,000 Variable overhead costs $130,500 $120,000 Variable overhead costs per machine-hour S 29.00 $ 30.00 Variable overhead costs per output unit $ 13.05 $12.00 Fixed overhead budget for 2017 is $3,312,000. The expects to operate at capacity in fiscal year 2017, with a budgeted usage of 57,600 machine-hours for a budgeted output of 144,000 jackets. The company identified a single cost-allocation base-machine-hours-to allocate fixed overhead costs, The flexible-budget amount for a fixed-cost item is also the amount included in the static budget prepared at the start of the period. No adjustment is required for differences between actual output and budgeted output for fixed costs because fixed costs are unaffected by changes in the output level within the relevant range. At the start of 2017, the company budgeted its fixed overhead costs to be $276,000 per month. The actual amount for April 2017 turned out to be $285,000. The fixed overhead flexible-budget variance is the difference between actual fixed overhead costs and fixed overhead costs in the flexible budget: There is no efficiency variance for fixed overhead costs. That's because a given lump sum of fixed overhead costs will be unaffected by how efficiently machine-hours are used to produce output in a given budget period. As there is no efficiency variance, the fixed overhead spending variance is the same amount as the fixed overhead flexible. budget variance: Fixed overhead spending variance - Actual costs incurred- Flexible budget amount = $285,000 - $276,000 - $9,000 The production-volume variance arises only for fixed costs. It is the difference between the budgeted fixed overhead and the fixed overhead allocated on the basis of actual output produced. Recall that at the start of the year, Required: calculate 1. VMOHSV 2 VMOHEV 3. FMOHSV 4. FMOHEV 5. Production volume variance