Turner Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH). Turner Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2014 is based on budgeted output of 684,000 units, requiring 4,104,000 DLH. The company is able to schedule production uniformly thorughout the year. A total of 76,000 output units requiring 324,000 DLH was produced during May 2014. Manufacturing overhead (MOH) costs incurred for May amounted to $333,280. The actual costs, compared with the annual budget and 1/12 of the annual budget, are as follows: (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. X X = 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 x Actual costs Flexible Allocated incurred budgeted rate budget overhead Variable MOH Next complete the table for fixed MOH. Same budgeted Actual costs lump sum regardless of Flexible Allocated incurred output level budget overhead Fixed MOH Now calculate the remaining listed amounts for Turner Products for May 2014. 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 efficiency variance is 5. The production-volume variance is i Data Table Annual Manufacturing Overhead Budget 2014 - X Per Per DLH Monthly Actual MOH Total Output Input MOH Budget Costs for Amount Unit Unit May 2014 May 2014 Variable MOH Indirect manufacturing labor $ 410,400 $ 0.60 $ 0.10 $ 34,200 $ 34,200 Supplies 820,800 1.20 0.20 68,400 117,000 Fixed MOH Supervision 492,480 0.72 0.12 41,040 41,000 Utilities 697,680 1.02 0.17 58,140 59,000 Depreciation 984,960 1.44 0.24 82,080 82,080 $ 3,406,320 $ 4.98 $ 0.83 $ 283,860 $ Total 333,280