Concept explainers
Flexible
A total of 72;000 output units requiring 321,000 DLH was produced during May 2017. 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 2017:
- A. Total
manufacturing overhead costs allocated
Required
- B. Variable manufacturing overhead spending variance
- C. Fixed manufacturing overhead spending variance
- D. Variable manufacturing overhead efficiency variance
- E. Production-volume variance
Be sure to identify each variance as favorable (F) or unfavorable (U).
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Chapter 8 Solutions
CUSTOM COST ACCT 2521 SWP W/ ACCESS
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- Using the following per-unit and total amounts, prepare a flexible budget at the 14,000-, 15,000-, and 16,000-unit levels of production and sales for Natural Products Inc.:arrow_forwardRefer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the following actual costs: Required: 1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. 2. What if Nashler Companys actual direct materials cost were 1,175,040? How would that affect the variance for direct materials? The total cost variance?arrow_forwardCold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?arrow_forward
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