Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 DLH per unit.For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and preparedthe following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual totaloverhead costs of $129,230.80% OperatingLevelsOverhead BudgetProduction in units10,000Budgeted variable overheadBudgeted fixed overhead$ 58,000$ 68,0001. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 20,000 DLH, computed as10,000 units 2.00 DLH per unit.2. Compute the total overhead variance.3. Compute the overhead controllable variance.4. Compute the overhead volume variance.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Compute the overhead controllable variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or novariance. Do not round intermediate calculations.)Controllable VarianceActual total overheadBudgeted flexible overheadTotalControllable variance< Required 2Required 4> Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 DLH per unit.For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and preparedthe following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual totaloverhead costs of $129,230.80% OperatingLevelsOverhead BudgetProduction in units10,000Budgeted variable overheadBudgeted fixed overhead$ 58,000$ 68,0001. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 20,000 DLH, computed as10,000 units × 2.00 DLH per unit.2. Compute the total overhead variance.3. Compute the overhead controllable variance.4. Compute the overhead volume variance.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Compute the overhead volume variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or novariance. Do not round intermediate calculations.)Volume VarianceVolume variance< Required 3Required 4

Name: Blaze Corporation allocates overhead on the basis of DLH and the stan
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Description: Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 DLH per unit.For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and preparedthe followi

Production of goods involves direct cost and indirect cost. Direct costs are fixed per unit and…

Business

Accounting

1. Compute the standard overhead rate. Hint.: Standard allocation base at 80% capacity is 20,000 DLH, computed as 10,000 units × 2.00 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance.

1. Compute the standard overhead rate. Hint.: Standard allocation base at 80% capacity is 20,000 DLH, computed as 10,000 units × 2.00 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Draw a graph showing budgeted and applied fixed overhead, and show an unfavorable (or positive) volume variance on the graph.
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Primara Corporation has a standard costing system in which it applies overhead to products on the basis of the standard direct labour- hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted standard direct labour-hours (denominator level of activity) Actual direct labour-hours Standard direct labour-hours allowed for the actual output $ 500,000 $ 508,000 50,000 54,000 52,000 Required: 1. Compute the fixed portion of the predetermined overhead rate for the year. Predetermined overhead rate per DLH
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Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 DLH per unit. For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual total overhead costs of $129,230. 80% Operating Levels Overhead Budget Production in units 10,000 Budgeted variable overhead Budgeted fixed overhead $ 58,000 $ 68,000 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 20,000 DLH, computed as 10,000 units × 2.00 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 20,000…
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