Describe how mancuscos control of variable manufacturing

Question

The Mancusco Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufacturing has two direct cost categories ( direct materials and manufacturing labor, both variable) and two overhead cost categories ( variable manufacturing overhead and fixed manufacturing overhead, both allocated direct manufacturing labor hours).

At the 40,000 budget direct manufacturing labor hour level for August, budgeted direct manufacturing labor is $800,000, budgeted variable manufacturing overhead is $480,000, and budgeted fixed manufacturing overhead is $640,000.

The following actual results are for August:

Direct Materials price variance (based on purchases) $176,000 F

Direct Materials efficiency variance $69,000 U

Direct manufacturing overhead labor incurred $522,750

Variable manufacturing overhead efficiency flexible- budget variance $10,350 U

Variable manufacturing overhead efficiency variance $18,000 U

Fixed manufacturing overhead incurred $597,460

Fixed manufacturing overhead spending variance $42,540 U

The standard cost per pound of direct materials is $11.50. The standard allowance is three pound of direct materials for each unit of product. During August, 30,000 units of product were produced. there was no beginning inventory of direct materials. there was no beginning or ending work in process. In August, the direct materials price variance was $1.10 per pound.

In July, labor unrest caused a major slowdown in the pace of production, resulting in an unfavorable direct manufacturing labor efficiency variance of $45,000. There was no direct manufacturing labor price variance. labor unrest persisted into August. Some workers quit. Their replacements had to be hired at higher wages rate, which had to be extended to all workers. The actual average wage rate in August exceeded the standard average wage rate by $0.50 per hour.

Required

1. Compute the following for August:
2. Total pounds of direct materials purchased
3. Total number of pounds of excess direct materials used
4. Variable Manufacturing overhead spending variance
5. Total number of actual direct manufacturing labor hours used
6. Total number of standard direct manufacturing labor hours allowed for the units produced
7. Production volume variance

2. Describe how Mancusco's control of variable manufacturing overead items differs form its control of fixed manufacturing overhead