requirement #4

spending variance and efficiency variance amounts and whether they are favorable/unfavorable

1. Prepare a graph for fixed manufacturing overhead. The graph should display how Top Notch, Inc.'s fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing 2. Suppose that 800,000 machine-hours were allowed for actual output produced in 2017, but 725,000 actual machine-hours were used. Actual manufacturing overhead was $4,712,500, variable, and $20,950,000, fixed Compute (a) the variable manufacturing overhead spending and efficiency variances and (b) the fixed manufacturing overhead spending and production-volume variances 3. What is the amount of the under- or overallocated variable manufacturing overhead and the under- or overallocated fixed manufacturing overhead? Why are the flexible-budget variance and the under- or overallocated overhead amount always the same for variable manufacturing overhead but rarely the same for fixed manufacturing overhead? Suppose the denominator level was 750,000 rather than 1,000,000 machine-hours. What variances in requirement 2 would be aflected? Recompute them. Top Notch, Inc., is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fxed) is allocated to products on the basis of budgeted machine-hours. In 2017, budgeted fixed manufacturing overhead cost was 21,000,000. Budgeted variable manufacturing overhead was $7 per machine-hour. The denominator level was 1,000,000 machine hours Read the requirements 1 Prenara a aranh ior fixed manudacturina ovarhead. The araph should display how Top Notch, Inc.'s fxed