Nolton-Ragnvald AS uses a standard costing system. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labour-hours (DLH). Nolton develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2022 is based on budgeted output of 720 000 units requiring 3 600 000 direct manufacturing labour-hours. The company is able to schedule production uniformly throughout the year.

A total of 66 000 output units requiring 315 000 direct labour-hours was produced during May 2022. Manufacturing overhead (MOH) costs incurred for May amounted to NOK 375 000. The actual costs as compared with the annual budget and 1/12 of the annual budget are shown below. Annual manufacturing overhead budget 2022

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Variable MOH Per Monthly Actual Per DLH MOH MOH Total output input budget, costs for amount unit unit May 2022 May 2022 Indirect mfg labour Supplies Fixed MOH Supervision NOK 900 000 NOK 1.25 NOK 0.25 NOK 75 000 NOK 75 000 1 224 000 1.70 0.34 102 000 111 000 648 000 0.90 0.18 54.000 51 000 Utilities 540 000 0.75 0.15 45 000 54 000 Depreciation 1 008 000 1.40 0.28 84.000 84 000 Total NOK 4 320 000 NOK 6.00 NOK 1.20 NOK 360 000 NOK 375 000 Required Calculate the following amounts for Nolton-Ragnvald for May 2022: 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.