(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required 1 Required 2

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below.]
Manuel Company predicts it will operate 80% of its productive capacity. Its overhead allocation base is DLH
and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this
period.
Production (in units)
Overhead
Variable overhead
Fixed overhead
Total overhead
Flexible Budget at 80%
Capacity
51,750
$ 284,625
51,750
$ 336,375
Actual
Results
46,800
$ 328,100
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units) Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 51,750 $ 284,625 51,750 $ 336,375 Actual Results 46,800 $ 328,100
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.
Volume Variance
Standard overhead applied
Budgeted (flexible) overhead
Volume variance
< Required 1
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
Controllable variance
Required 2 >
Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.
Controllable variance
< Required 1
Required 2 >
Transcribed Image Text:(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the overhead volume variance. Indicate variance as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Volume Variance Standard overhead applied Budgeted (flexible) overhead Volume variance < Required 1 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Controllable variance Required 2 > Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Controllable variance < Required 1 Required 2 >
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