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

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.