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# topic 10 - 8-23(30 min 40 1 Straightforward coverage of...

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8-23 (30 - 40 min.) Straightforward coverage of manufacturing overhead, standard- costing system. 1. Solution Exhibit 8-23 shows the computations. Summary details are: Actual Flexible Budget Output units 41,000 41,000 Allocation base (machine-hours) 13,300 12,300 a Allocation base per output unit 0.32 b 0.30 Variable MOH \$155,100 \$147,600 c Variable MOH per hour \$11.66 d \$12.00 Fixed MOH \$401,000 \$390,000 Fixed MOH per hour \$30.15 e a 41,000 × 0.30 = 12,300 d \$155,100 ÷ 13,300 = \$11.66 b 13,300 ÷ 41,000 = 0.32 e \$401,000 ÷ 13,300 = \$30.15 c 41,000 × 0.30 × \$12 = \$147,600 An overview of the 4-variance analysis is: 4-Variance Analysis Spending Variance Efficiency Variance Production - Volume Variance Variable Manufacturing Overhead \$4,500 F \$12,000 U Never a variance Fixed Manufacturing Overhead \$11,000 U Never a variance \$21,000 U

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2. Variable Manuf. Overhead Control 155,100 Accounts Payable Control and other accounts 155,100 Work-in-Process Control 147,600 Variable Manufacturing Overhead Allocated 147,600 Variable Manuf. Overhead Allocated 147,600 Variable Manuf. Overhead Efficiency Variance 12,000 Variable Manuf. Overhead Spending Variance 4,500 Variable Manuf. Overhead Control 155,100 Fixed Manuf. Overhead Control 401,000
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