Thompson Manufacturing uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DMLH). (Click the icon to view additional information.) The actual costs, compared with the annual budget and 1/12 of the annual budget, are as follows: (Click the icon to view the data.) 1. Calculate total manufacturing overhead costs allocated. Begin by computing the budgeted hours per unit. Determine the formula, then compute the amount. Budgeted DMLH 3,888,000 Budgeted units 648,000 Budgeted hours per unit 6 Now calculate the total manufacturing overhead (MOH) costs allocated. Determine the formula, then complete the calculation. Actual units 74,000 Budgeted hrs per unit 6 Read the requirement. Total MOH rate 0.96 = $ Total MOH costs allocated 426,240 For items 2 through 5, complete the following tables before calculating the remaining amounts in the requirement. Complete the table for variable MOH. Variable MOH Actual input Actual costs Flexible Allocated incurred budgeted rate budget overhead Requirement Calculate the following amounts for Thompson Manufacturing for August 2020: 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 Be sure to identify each variance as favorable (F) or unfavorable (U). Thompson develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2020 is based on budgeted output of 648,000 units, requiring 3,888,000 DMLH. The company is able to schedule production uniformly thorughout the year. A total of 74,000 output units requiring 320,000 DMLH was produced during August 2020. Manufacturing overhead (MOH) costs incurred for August amounted to $400,420. More info Annual Manufacturing Overhead Budget 2020 Per Per DMLH Total Output Input Monthly MOH Budget Actual MOH Costs for Amount Unit Unit August 2020 August 2020 Variable MOH Indirect manufacturing labor $ 1,166,400 $ 1.80 $ 0.30 $ 97,200 $ 97,200 Supplies 777,600 1.20 0.20 64,800 117,000 Fixed MOH Supervision Utilities Depreciation 505,440 0.78 0.13 42,120 41,000 388,800 0.60 0.10 32,400 62,000 894,240 1.38 0.23 74,520 83,220 $ 3,732,480 $ 5.76 $ 0.96 $ 311,040 $ 400,420 Total