Chapter 8, Problem 8.38P

Overhead variance, missing information. Consider the following two situations—cases A and B—independently. Data refer to operations for April 2017. For each situation, assume standard costing. Also assume the use of a flexible budget for control of variable and fixed manufacturing overhead based on machine-hours.

	Cases
	A	B
(1) Fixed manufacturing overhead incurred	$27,000	$132,900
(2) Variable manufacturing overhead incurred	$10,511	—
(3) Denominator level in machine-hours	—	45,000
(4) Standard machine-hours allowed for actual output achieved	4,700	—
(5) Fixed manufacturing overhead (per standard machine-hour)	—	—
Flexible-Budget Data:
(6) Variable manufacturing overhead (per standard machine-hour)	—	$ 2.10
(7) Budgeted fixed manufacturing overhead	$23,375	$130,500
(8) Budgeted variable manufacturing overheada	—	—
(9) Total budgeted manufacturing overheada	—	—
Additional Data:
(10) Standard variable manufacturing overhead allocated	$10,340	—
(11) Standard fixed manufacturing overhead allocated	$19,975	—
(12) Production-volume variance	—	$ 580 F
(13) Variable manufacturing overhead spending variance	$ 457 U	$ 1,490 F
(14) Variable manufacturing overhead efficiency variance	—	$ 1,680 F
(15) Fixed manufacturing overhead spending variance	—	—
(16) Actual machine-hours used	—	—

^a For standard machine-hours allowed for actual output produced.

Fill in the blanks under each case. [Hint: Prepare a worksheet similar to that in Figure 8-4 (page 304). Fill in the knowns and then solve for the unknowns.]

  Required