1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000 units 3.00 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance.
1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000 units 3.00 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Question
![Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3 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 $103,425.
Overhead Budget
Production in units.
Budgeted variable overhead
Budgeted fixed overhead
1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000 units x
3.00 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.
Actual total overhead
Budgeted flexible overhead
Required 1 Required 2 Required 3 Required 4
Compute the overhead controllable variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no
variance. Do not round intermediate calculations.)
Total
Controllable variance
80% Operating
Levels
10,000
$ 42,000
$ 57,000
Overhead Budget
Production in units
Budgeted variable overhead
Budgeted fixed overhead
Controllable Variance
Required 1
< Required 2
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3 DLH per unit. For March,
the company planned production 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 $103,425.
Volume variance
80% Operating
Levels
10,000
$ 42,000
$ 57,000
1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000 units x
3.00 DLH per unit.
2. Compute the total overhead variance.
3. Compute the overhead controllable variance.
4. Compute the overhead volume variance.
0
Complete this question by entering your answers in the tabs below.
C
Required 4 >
Required 2 Required 3 Required 4
Compute the overhead volume variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no
variance. Do not round intermediate calculations.)
Volume Variance
< Required 3
Required 4 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F231fae22-ac62-4382-9eb0-95d912af77d1%2Fb561e18e-c466-4d9a-905e-17ff898186e3%2Fiecv7xf_processed.png&w=3840&q=75)
Transcribed Image Text:Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3 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 $103,425.
Overhead Budget
Production in units.
Budgeted variable overhead
Budgeted fixed overhead
1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000 units x
3.00 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.
Actual total overhead
Budgeted flexible overhead
Required 1 Required 2 Required 3 Required 4
Compute the overhead controllable variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no
variance. Do not round intermediate calculations.)
Total
Controllable variance
80% Operating
Levels
10,000
$ 42,000
$ 57,000
Overhead Budget
Production in units
Budgeted variable overhead
Budgeted fixed overhead
Controllable Variance
Required 1
< Required 2
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3 DLH per unit. For March,
the company planned production 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 $103,425.
Volume variance
80% Operating
Levels
10,000
$ 42,000
$ 57,000
1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000 units x
3.00 DLH per unit.
2. Compute the total overhead variance.
3. Compute the overhead controllable variance.
4. Compute the overhead volume variance.
0
Complete this question by entering your answers in the tabs below.
C
Required 4 >
Required 2 Required 3 Required 4
Compute the overhead volume variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no
variance. Do not round intermediate calculations.)
Volume Variance
< Required 3
Required 4 >
![Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3 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 $103,425.
Overhead Budget
Production in units.
Budgeted variable overhead
Budgeted fixed overhead
1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000 units x
3.00 DLH per unit.
2. Compute the total overhead variance.
3. Compute the overhead controllable variance.
4. Compute the overhead volume variance.
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
80% Operating
Levels
10,000
$ 42,000
$ 57,000
Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000
units x 3 DLH per unit. (Round your answer to 2 decimal places.)
Standard overhead rate
Overhead Budget
Production in units
Budgeted variable overhead
Budgeted fixed overhead.
Required 3 Required 4
Required 1
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3 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 $103,425.
< Required 1
Overhead variance
80% Operating
Levels
10,000
$ 42,000
$ 57,000
1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000 units x
3.00 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 2 Required 3 Required 4
Required 2 >
Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.
Do not round intermediate calculations.)
Overhead variance
< Required 1
Required 3 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F231fae22-ac62-4382-9eb0-95d912af77d1%2Fb561e18e-c466-4d9a-905e-17ff898186e3%2Fhvnlptj_processed.png&w=3840&q=75)
Transcribed Image Text:Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3 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 $103,425.
Overhead Budget
Production in units.
Budgeted variable overhead
Budgeted fixed overhead
1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000 units x
3.00 DLH per unit.
2. Compute the total overhead variance.
3. Compute the overhead controllable variance.
4. Compute the overhead volume variance.
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
80% Operating
Levels
10,000
$ 42,000
$ 57,000
Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000
units x 3 DLH per unit. (Round your answer to 2 decimal places.)
Standard overhead rate
Overhead Budget
Production in units
Budgeted variable overhead
Budgeted fixed overhead.
Required 3 Required 4
Required 1
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3 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 $103,425.
< Required 1
Overhead variance
80% Operating
Levels
10,000
$ 42,000
$ 57,000
1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000 units x
3.00 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 2 Required 3 Required 4
Required 2 >
Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.
Do not round intermediate calculations.)
Overhead variance
< Required 1
Required 3 >
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