Robinson Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH).
Robinson Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2014 is based on budgeted output of 696,000 units.
Requiring 3,480,000 DLH.		The company is able to schedule production uniformly thorughout the year. A total of 69,000 output units requiring 324,000 DLH
Manufacturing overhead (MOH) costs incurred for May amounted to 372,600
Annual Manufacturing Overhead Budget 2014
		Per	Per DLH	Monthly	Actual MOH
	Total	Output	Input	MOH Budget	Costs for
	Amount	Unit	Unit	May-14	May-14
Variable MOH
Indirect manufacturing labor	$1,044,000	$1.50	$0.30	$87,000	$87,000
Supplies	696,000	1	0.2	58,000	115,000
Fixed MOH
Supervision	522,000	0.75	0.15	43,500	43,000
Utilities	348,000	0.5	0.1	29,000	58,000
Depreciation	835,200	1.2	0.24	69,600	69,600
Total	$3,445,200	$4.95	$0.99	$287,100	$372,600
Budgeted hours per unit
Total MOH costs allocated
	Actual input						Same budgeted
	Actual costs	x	Flexible	Allocated				lump sum
	incurred	budgeted rate	budget	overhead			Actual costs	regardless of	Flexible	Allocated
Variable MOH							incurred	output level	budget	overhead
						Fixed MOH
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