Moozi Dairy Products Processes and Sells Two Products: Milk and Butter

question 310

Essay

Moozi Dairy Products processes and sells two products: milk and butter. Last year, Moozi budgeted $1,200,000 of fixed manufacturing overhead and chose a denominator level of activity of 80,000 machine-hours. Each unit of milk at Moozi has a standard of 0.1 machine-hours and each unit of butter has a standard of 0.08 machine-hours. Last year, Moozi processed 560,000 units of milk and 340,000 units of butter. Moozi's total fixed manufacturing overhead incurred last year was $1,256,000. Actual machine-hours incurred for the year were 82,000. Moozi applies manufacturing overhead to its products on the basis of standard machine-hours.
Required:
Compute Moozi's fixed manufacturing overhead variances for last year.

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Definitions:

Consciousness Raising

A process of increasing awareness about social, political, or personal issues, often used in social movements to foster change.

Irrational Beliefs

False or unreasonable beliefs or thoughts that are not based on reality or logical reasoning.

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Negative thoughts about oneself that can undermine self-esteem and contribute to mental health issues.