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3. Compute the overhead controllable variance. 4. Compute the overhead volume variance.

3. Compute the overhead controllable variance. 4. Compute the overhead volume variance.

FINANCIAL ACCOUNTING
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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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. 80% Operating Levels 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance. 10,000 $ 42,000 $ 57,000 Actual total overhead Budgeted flexible overhead Variable overhead Fixed overhead Complete this question by entering your answers in the tabs below. 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.) Overhead Budget Production in units Budgeted variable overhead Budgeted fixed overhead Controllable Variance ✓ $ 47,250 ✓ ✓ 57,000✔ Answer is not complete. Actual total overhead Budgeted flexible overhead Variable overhead Fixed overhead Total Controllable variance $ 111,375 x our 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 * 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. X Answer is not complete. Required 1 Required 2 Required 3 Required 4 ✓ $ 47,250✔ 57,000✔ ✓ Compute the overhead controllable variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) Controllable Variance $ 111,375 x 104,250 $ 7,125 Favorable < Required 2 Required 4 >
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. 80% Operating Levels 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance. 10,000 $ 42,000 $ 57,000 Actual total overhead Budgeted flexible overhead Variable overhead Fixed overhead Complete this question by entering your answers in the tabs below. 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.) Overhead Budget Production in units Budgeted variable overhead Budgeted fixed overhead Controllable Variance ✓ $ 47,250 ✓ ✓ 57,000✔ Answer is not complete. Actual total overhead Budgeted flexible overhead Variable overhead Fixed overhead Total Controllable variance $ 111,375 x our 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 * 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. X Answer is not complete. Required 1 Required 2 Required 3 Required 4 ✓ $ 47,250✔ 57,000✔ ✓ Compute the overhead controllable variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) Controllable Variance $ 111,375 x 104,250 $ 7,125 Favorable < Required 2 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. 80% Operating Levels 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. 10,000 $ 42,000 $ 57,000 Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Volume variance X Answer is not complete. 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 4
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. 80% Operating Levels 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. 10,000 $ 42,000 $ 57,000 Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Volume variance X Answer is not complete. 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 4
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