Thompson 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 and 1/12 of the annual budget, are as follows B (Click the icon 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 X For items 2 through 5, complete the following tables before calculating the remaining amounts the requirement. Complete the variable MOH. Actual input Actual costs X Flexible Allocated incurred budgeted rate budget overhead Variable MOH Actual MOH Annual Manufacturing Overhead Budget 2017 Per Per DLH Monthly Total Output Input MOH Budget Amount Unit Unit May 2017 Costs for May 2017 Variable MOH 0.30 $ 85,500 $ 85,500 Indirect manufacturing labor $ 1,026,000 $ 1.50 $ Supplies 684,000 1.00 Fixed MOH 0.20 57,000 114,000 513,000 0.75 0.15 42,000 Supervision Utilities 0.50 0.10 342,000 752,400 42,750 28,500 62,700 57,000 62,700 1.10 0.22 Depreciation $ 3,317,400 $ 4.85 $ Total 0.97 $ 276,450 $ 361,200 Calculate the following amounts for Thompson Products for May 2017: 1. Total manufacturing overhead costs allocated 2. Variable manufacturing overhead spending variance 3. Fixed manufacturing overhead spending variance 4. Variable manufacturing overhead efficiency variance 5. Production-volume variance Be sure to identify each variance as favorable (F) or unfavorable (U). Thompson 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 and 1/12 of the annual budget, are as follows B (Click the icon 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 X For items 2 through 5, complete the following tables before calculating the remaining amounts the requirement. Complete the variable MOH. Actual input Actual costs X Flexible Allocated incurred budgeted rate budget overhead Variable MOH Actual MOH Annual Manufacturing Overhead Budget 2017 Per Per DLH Monthly Total Output Input MOH Budget Amount Unit Unit May 2017 Costs for May 2017 Variable MOH 0.30 $ 85,500 $ 85,500 Indirect manufacturing labor $ 1,026,000 $ 1.50 $ Supplies 684,000 1.00 Fixed MOH 0.20 57,000 114,000 513,000 0.75 0.15 42,000 Supervision Utilities 0.50 0.10 342,000 752,400 42,750 28,500 62,700 57,000 62,700 1.10 0.22 Depreciation $ 3,317,400 $ 4.85 $ Total 0.97 $ 276,450 $ 361,200 Calculate the following amounts for Thompson Products for May 2017: 1. Total manufacturing overhead costs allocated 2. Variable manufacturing overhead spending variance 3. Fixed manufacturing overhead spending variance 4. Variable manufacturing overhead efficiency variance 5. Production-volume variance Be sure to identify each variance as favorable (F) or unfavorable (U)
