The second photo is requirement 1 finished
Top Notch, Inc., is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2020 , budgeted fixed manufacturing overhead cost was $18,000,000. Budgeted variable manufacturing overhead was $7 per machine-hour. The denominator level was 1,000,000 machine-hours. Read the requirements. Requirements 1. Prepare a graph for fixed manufacturing overhead. The graph should display how Top Notch, d manufacturing overhead costs will be Inc.'s fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing. 2. Suppose that 975,000 machine-hours were allowed for actual output produced in 2020, but 1,025,000 actual machine-hours were used. Actual manufacturing overhead was $7,687,500, variable, and $18,100,000, fixed. Compute (a) the variable manufacturing overhead spending and 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? 4. Suppose the denominator level was 750,000 rather than 1,000,000 machine-hours. What variances in requirement 2 would be affected? Recompute them. Fivart Manufarturinn Nyarhead Cocte Top Notch, Inc., is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2020 , budgeted fixed manufacturing overhead cost was $18,000,000. Budgeted variable manufacturing overhead was $7 per machine-hour. The denominator level was 1,000,000 machine-hours. Read the requirements. Requirements 1. Prepare a graph for fixed manufacturing overhead. The graph should display how Top Notch, d manufacturing overhead costs will be Inc.'s fixed manufacturing overhead costs will be depicted for the purposes of (a) planning and control and (b) inventory costing. 2. Suppose that 975,000 machine-hours were allowed for actual output produced in 2020, but 1,025,000 actual machine-hours were used. Actual manufacturing overhead was $7,687,500, variable, and $18,100,000, fixed. Compute (a) the variable manufacturing overhead spending and 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? 4. Suppose the denominator level was 750,000 rather than 1,000,000 machine-hours. What variances in requirement 2 would be affected? Recompute them. Fivart Manufarturinn Nyarhead Cocte
