Wilson Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH).

Wilson Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2017 is based on budgeted output of 600,000 units, requiring 3,600,000 DLH. The company is able to schedule production uniformly thorughout the year. A total of 71,000 output units requiring 316,000 DLH was produced during May 2017. Manufacturing overhead (MOH) costs incurred for May amounted to $371,000.

The actual costs, compared with the annual budget and 1/12 of the annual budget, are as follows:

Annual Manufacturing Overhead Budget 2017
	Total amount	Per output unit	Per DLH input unit	Monthly MOH Budget May 2017	Actual MOH Costs for May 2017
Variable MOH
Indirect manufacturing labor	1,080,000	1.80	.30	90,000	90,000
Supplies	720,000	1.20	.20	60,000	114,000
Fixed MOH
Supervision	540,000	0.90	.15	45,000	43,000
Utilities	468,000	0.78	.13	39,000	61,000
Depreciation	756,000	1.26	.21	63,000	63,000
Total	3,564,000	5.94	.99	297,000	371,000

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
	x		x		=

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
	Actual costs	x	Flexible	Allocated
	incurred	budgeted rate	budget	overhead
Variable MOH

Next complete the table for fixed MOH.

		Same budgeted
		lump sum
	Actual costs	regardless of	Flexible	Allocated
	incurred	output level	budget	overhead
Fixed MOH

Now calculate the remaining listed amounts for Wilson 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 efficiency variance is

5.

The production-volume variance is

Choose from any list or enter any number in the input fields and then continue to the next question.