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

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 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

Turner

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

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