Flexible budgets, integrated variance analysis. CMA adapted Clarke
Products uses standard costing. It allocates manufacturing overhead both variable and fixed to products on the
basis of standard direct manufacturing laborhours DLH Clarke develops its manufacturing overhead rate from
the current annual budget. The manufacturing overhead budget for is based on budgeted output of
units, requiring The company is able to schedule production uniformly throughout the year.
A total of output units requiring was produced during May Manufacturing
overhead MOH costs incurred for May amounted to $ The actual costs, compared with the annual
budget and of the annual budget, are:
Required Calculate the following amounts for Clarke Products for May :
Total manufacturing overhead costs allocated
Variable manufacturing overhead spending variance
Fixed manufacturing overhead spending variance
Variable manufacturing overhead efficiency variance
Productionvolume variance
