The actual cos, compared with the annual budget and 1/12 of the annual budget areas Harrison Products uses standard costing. It allocaties manufacturing overhead (both variable and foed) to products on the basis of standard direct manufacturing labor hours (DLH). Click the icon to view additional information.) (Click the icon to view the data) * Data Table More in Harrison 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 4,032,000 DLH. The company is able to schedule production uniformly thorughout the year. A total of 75,000 output unis requiring 316,000 DLH was produced during May 2017 Manufacturing overhead (MOH) costs incurred for May amounted to $420,240. 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 $ 1,209,600 $ 1.80 $ 0.30 $ 100,800 5 100,800 Supplies 806,400 120 0.20 67,200 112,000 Fixed MOH Supervision 564,480 034 47.040 46,000 Unes 585.440 57 120 64,000 1.169280 970 Depreciation 4.435 200 $ 60S 1.10 $ 369600 5 420.240 Print Done Harrison Products uses standard costing. It allocates manufacturing overhead (both variable and foxed) to products on the basis of standard direct manufacturing labor hours (DLH). (Click the icon to view additional information.) The actual costs, compared with the annual budget and follows Click the loon to view the data.) Read the requirement. 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 Flexible Actual costs incurred Allocated overhead budgeted rate budget Variable MOH Harrison Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH). (Click the icon to view additional information.) The actual costs, compared with the annual budget an follows: Click the icon to view the data.) Read the requirement. Flexible Allocated Actual costs incurred budgeted rate budget overhead Variable MOH Next complete the table for fixed MOH. Same budgeted Actual costs lump sum regardless of output level Flexible Allocated incurred budget overhead Fixed MOH Now calculate the remaining listed amounts for Harrison 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 officiency variance is 5. The production-volume variance is 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 $ 1,209,600 $ 1.80 $ 0.30 $ 100,800 $ 100,800 Supplies 806,400 1.20 0.20 67,200 112,000 Fixed MOH Supervision 564,480 0.84 0.14 47,040 46,000 Utilities 685,440 1.02 0.17 57,120 64,000 Depreciation 1.169,280 0.29 97,440 97,440 $ 4,435,200 $ 6.60 $ 1.10 $ 369,600 $ 420,240 Total * More Info on Products for M ariance is Ince is ariance is Harrison 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 4,032,000 DLH. The company is able to schedule production uniformly thorughout the year. A total of 75,000 output units requiring 316,000 DLH was produced during May 2017 Manufacturing overhead (MOH) costs incurred for May amounted to $420,240. Print Done
