Requirements 1. How much variable overhead would have been allocated to production? How much fixed overhead would have been allocated to production? 2. Compute the variable MOH rate variance and the variable MOH efficiency variance. What do these variances tell managers? 3. Compute the fixed MOH budget variance and the fixed overhead volume variance. What do these variances tell managers? More info The company allocates manufacturing overhead based on direct labor hours. Armstrong has budgeted fixed manufacturing overhead for the year to be $634,000. The predetermined fixed manufacturing overhead rate is $16.60 per direct labor hour, while the standard variable manufacturing overhead rate is $0.80 per direct labor hour. The direct labor standard for each case is one - quarter (0.25) of an hour. The company actually processed 154,000 cases of frozen organic fruits during the year and incurred $688,200 of manufacturing overhead. Of this amount, $646,000 was fixed. The company also incurred a total of 42,200 direct labor hours. Requirement 1. How much variable overhead would have been allocated to production? How much foxed overhead would have been allocated to production? The variable overhead allocated to production is Now determine the fixed overtioad allocated to production. The fixed overhead allocaled to production is : Requirement 2. Compute the variable MOH rate variance and the variable MOH efficiency variance. What do these variances tell managers? Begin by determing the formula for the variable MOH rate variance, then calculate the variable overhead rate variance. (Enter the result as a positive number. Enter rates unfarorable (U). This variance tells managers that Armstrong Foods actually incurred on variable manufacturing overhead than they would have expected given the actual hours us: Now determine the formula for the variable MOH efficiency varlance, then calculate the efficiency variance. (Enter the result as a positive number. Enter any rates to two de untavorable (U).) This variance tells managers that Armstrong Foods used direct labor hours than anticipated for the actual volume of output. Requirement 3. Compute the fixed MOH budget variance and the fixed overhead volume variance. What do these variances fell managers? Begin by determing the formula for the fixed MOH budgat variance, then calculate the fixed budget variance. (Enter the result as a postive number. Label the variance as favorabie (f This variance tells us that Armstrong Foods spent than anticipated on foxed overhead costs Now determine the formula for the fixed overhead volume variance, then calculate the volume variance. (Enter the result as a positve number: Label the variance as faverable (F) or u This variance telis managers that Armstrong Foods produced cases of frozen organic truits than oripinally expected