Maurice Tutor

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    Argosy University/ Phoniex University/
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    Oct-2001 - Nov-2016

Category > Accounting Posted 13 Aug 2017 My Price 12.00

Nolton Products

Flexible budgets, 4-variance analysis. (CMA, adapted) Nolton Products uses standard costing allocates manufacturing overhead (both variable and fixed)to products on the basis of standard direct manufacturing labor-hours (DLH). Nolton develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2009 is based on budgeted output of 720,000 units, requiring 3,600,000 DLH. The company is able to schedule production uniformly throughout the year.
A total of 66,000 output units requiring $315,000 DLH was produced during May 2009. Manufacturing overhead (MOH) costs incurred for May amounted to $375,000. The actual costs, compared with the -a budget and 1/12 of the annual budget, are as follows:

Calculate the following amounts for Nolton Products for May 2009:
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).

Answers

Maurice Tutor
(5)
Status NEW Posted 13 Aug 2017 12:08 AM My Price 12.00

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