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28 Sep 2019
Robinson Products uses standard costing. It allocates manufacturing overheadâ (both variable andâ fixed) to products on the basis of standard direct manufacturingâ 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 overheadâ (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
Robinson Products uses standard costing. It allocates manufacturing overheadâ (both variable andâ fixed) to products on the basis of standard direct manufacturingâ 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 overheadâ (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 | |||||||||||
Bunny GreenfelderLv2
28 Sep 2019