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

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

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(Click the icon to view the data.) Read the requirement

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.

1. Calculate total manufacturing overhead costs allocated.

Begin by computing the budgeted hours per unit. Determine the formula, then compute the amount.

Actual DLH		Budgeted units	=	Budgeted hours per unit
3,960,000		660,000	=

Now calculate the total manufacturing overhead (MOH) costs allocated. Determine the formula, then complete the calculation.

Actual hrs per unit		Budgeted hrs per unit		Total MOH rate	=	Total MOH costs allocated
72,000		6		.83	=

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		Flexible	Allocated
	incurred	budgeted rate	budget	overhead
Variable MOH	147,000

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

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amounts for

Harrison

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