More info Requirement Wilson Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2017 is based on budgeted output of 672,000 units, requiring 3,360,000 DLH. The company is able to schedule production uniformly thorughout the year. A total of 72,000 output units requiring 321,000 DLH was produced during May 2017. Manufacturing overhead (MOH) costs incurred for May amounted to $355,800. Calculate the following amounts for Wilson Products for May 2017: 1. Total manufacturing overhead costs allocated 2. Variable manufacturing overhead spending variance 3. Fixed manufacturing overhead spending variance 4. Variable manufacturing overhead efficiency variance 5. Production-volume variance Be sure to identify each variance as favorable (F) or unfavorable (U). Annual Manufacturing Overhead Budget 2017 Per Per DLH Monthly Actual MOH Total Output Input MOH Budget Costs for Amount Unit Unit May 2017 May 2017 Variable MOH Indirect manufacturing labor $ 1,008,000 $ 1.50 $ 0.30 $ 84,000 $ 84,000 Supplies 672,000 1.00 0.20 56,000 117,000 Fixed MOH Supervision Utilities Depreciation Total 571,200 0.85 0.17 47,600 41,000 369,600 0.55 0.11 30,800 55,000 705,600 1.05 0.21 58,800 58,800 $ 3,326,400 $ 4.95 $ 0.99 $ 277,200 $ 355,800 1. Calculate total manufacturing overhead costs allocated. Begin by computing the budgeted hours per unit. Determine the formula, then compute the amount. 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. For items 2 through 5, complete the following tables before calculating the remaining amounts in the requirement. Complete the table for variable MOH. Variable MOH Actual input Actual costs Flexible Allocated incurred budgeted rate budget overhead Next complete the table for fixed MOH. Same budgeted Actual costs lump sum regardless of Flexible Allocated incurred output level budget overhead Fixed MOH Same budgeted lump sum Actual costs regardless of Flexible Allocated incurred output level budget overhead Fixed MOH Now calculate the remaining listed amounts for Wilson 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