was $$9$ per machine$-$hour. The denominator level was $1,000,000$ machine$-$hours.

Read the requirements

Requirement $1.$ Prepare a graph for fixed manufacturing overhead. The graph should display how Radiant, Inc.$\text{'}$s fixed mat

the graph.$)$

Requirements

Prepare a graph for fixed manufacturing overhead. The graph should display how Radiant, Inc.$\text{'}$s

fixed manufacturing overhead costs will be depicted for the purposes of $($a$)$ planning and control

and $($b$)$ inventory costing.

Suppose that $975,000$ machine$-$hours were allowed for actual output produced in $2020,$ but

$950,000$ actual machine$-$hours were used. Actual manufacturing overhead was $$8,075,000,$

variable, and $$21,100,000,$ fixed. Compute $($a$)$ the variable manufacturing overhead spending and

efficiency variances and $($b$)$ the fixed manufacturing overhead spending and production$-$volume

variances.

What is the amount of the under$-$ or overallocated variable manufacturing overhead and

the under$-$ or overallocated fixed manufacturing overhead? Why are the flexible$-$budget variance

and the under$-$ or overallocated overhead amount always the same for variable manufacturing

overhead but rarely the same for fixed manufacturing overhead?

Suppose the denominator level was $750,000$ rather than $1,000,000$ machine$-$hours. What

variances in requirement $2$ would be affected? Recompute them.

efficiency variances and $($b$)$ the fixed manufacturing overhead spending and production$-$volume variances.

$($a$)$ Begin by calculating the following amounts for the variable manufacturing overhead.