Thompson Foods processes bags of organic frozen fruits sold at specialty grocery stores.

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Read the requirements.

Requirement $1.$ How much variable overhead would have been allocated to production? How much fixed overhead would have been allocated to production?

The variable overhead allocated to production is

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Requirements

How much variable overhead would have been allocated to production? How much fixed

overhead would have been allocated to production?

Compute the variable MOH rate variance and the variable MOH efficiency variance. What do

these variances tell managers?

Compute the fixed MOH budget variance and the fixed overhead volume variance. What do

The company allocates manufacturing overhead based on direct labor hours.

Thompson has budgeted fixed manufacturing overhead for the year to be

$$628,000.$ The predetermined fixed manufacturing overhead rate is $$16\mathrm{.}60$ per

direct labor hour, while the standard variable manufacturing overhead rate is $$0\mathrm{.}90$

per direct labor hour. The direct labor standard for each case is one $-$ quarter

$(0\mathrm{.}25)$ of an hour.

The company actually processed $154,000$ cases of frozen organic fruits during the

year and incurred $$694,000$ of manufacturing overhead. Of this amount, $$652,000$

was fixed. The company also incurred a total of $42,000$ direct labor hours.

these variances tell managers?