Turner Manufacturing uses standard costing. It allocates manufacturing overhead $($both variable and fixed$)$ to

products on the basis of standard direct manufacturing labor$-$hours $($DMLH$).$

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The actual costs, compared with the annual budget and $\frac{1}{12}$ of the annual budget, are as follows:

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Read the requirement.

Calculate total manufacturing overhead costs allocated.

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

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Turner develops its manufacturing overhead rate from the current annual budget.

The manufacturing overhead budget for $2020$ is based on budgeted output of

$708,000$ units, requiring $4,248,000$ DMLH$.$ The company is able to schedule

production uniformly thorughout the year. A total of $75,000$ output units requiring

$319,000$ DMLH was produced during August $2020.$ Manufacturing

overhead $(MOH)$ costs incurred for August amounted to $$438,020.$

Requirement

Calculate the following amounts for Turner Manufacturing for August $2020$:

Total manufacturing overhead costs allocated

Variable manufacturing overhead spending variance

Fixed manufacturing overhead spending variance

Variable manufacturing overhead efficiency variance

Production$-$volume variance

Be sure to identify each variance as favorable $($F$)$ or unfavorable $($U$).$

Data tableTurner 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 $\frac{1}{12}$ of the annual budget, are as follows:

$($Click the icon to view the data.$)$

Read the requirement.

Calculate total manufacturing overhead costs allocated.

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

More info

Turner develops its manufacturing overhead rate from the current annual budget.

The manufacturing overhead budget for $2020$ is based on budgeted output of

$708,000$ units, requiring $4,248,000$ DMLH$.$ The company is able to schedule

production uniformly thorughout the year. A total of $75,000$ output units requiring

$319,000$ DMLH was produced during August $2020.$ Manufacturing

overhead $(MOH)$ costs incurred for August amounted to $$438,020.$

Requirement

Calculate the following amounts for Turner Manufacturing for August $2020$:

Total manufacturing overhead costs allocated

Variable manufacturing overhead spending variance

Fixed manufacturing overhead spending variance

Variable manufacturing overhead efficiency variance

Production$-$volume variance

Be sure to identify each variance as favorable $($F$)$ or unfavorable $($U$).$

Data table