Wilson Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH). Wilson Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2014 is based on budgeted output of 672,000 units, requiring 3,360,000 DLH. The company is able to schedule production uniformly throughout the year.

A total of 72,000 output units requiring 321,000 DLH was produced during May 2014. Manufacturing overhead (MOH) costs incurred for May amounted to $ 355,800. The actual costs, compared with the annual budget and 1/12 of the annual budget, are as follows:

Calculate the following amounts for Wilson Products for May 2014:

Required
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).

Annual Manufacturing Overhead Budget 2014 Per Per DLH Monthly Actual MOH Total Output I MOH Budget Costs for May 2014 Amount Unit Unit May 2014 Variable MOH Indirect manufacturing labor $1,008,000 $150 030 0.20 84,000 84,000 56,000 117000 Supplies 672,000 1.00 Fixed MOH Supervision Utilities Depreciation 571,200 0.85 0.17 0.11 0.21 3,326,400 $495 $0.99 47,600 30,800 58,800 41000 55,000 88,800 369,600 0.55 705,600 1.05 Total 277 200 $35580