Wilson

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 uses standard costing. It allocates manufacturing overhead (both The actual costs, compared with the annual budget and 1/12 of the annual budget, variable and xed) to products on the basis of standard direct manufacturing are as follows: labor-hours (DLH)- a (Click the icon to view the data.) 0 (Click the icon to view additional information.) Read the @uirement. 1. Calculate total manufacturing overhead costs allocated. Begin by computing the budgeted hours per unit. Determine the formula, then compute the amount. Budgeted DLH + Budgeted units Budgeted hours per unit : Wilson Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2017 is based on budgeted output of 672,000 units, requiring 3,360,000 DLH. The company is able to schedule production uniformly thorughout the year. A total of 72,000 output units requiring 321,000 DLH was produced during May 2017. Manufacturing overhead (MOH) costs incurred for May amounted to $355,800. Annual Manufacturing Overhead Budget 2017 Per Per DLH Monthly Actual MOH Total Output Input MOH Budget Costs for Amount Unit Unit May 2017 May 2017 Variable MOH Indirect manufacturing labor $ 1,008,000 $ 1.50 $ 0.30 $ 84,000 $ 84,000 Supplies 672,000 1.00 0.20 56,000 117,000 Fixed MOH Supervision 571,200 0.85 0.17 47,600 41,000 Utilities 369,600 0.55 0.11 30,800 55,000 Depreciation 705,600 1.05 0.21 58,800 58,800 Total $ 3,326,400 $ 4.95 0.99 $ 277,200 $ 355,800