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 standard overhead rate. Hint: Standard allocation base at 80% capacity is 20,000 DLH, computed as 10,000units x 2 DLH per unit. (Round your answer to 2 decimal places.)Standard overhead rate< Required 1Required 2 > 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 20,000 DLH, computed as10,000 units x 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 total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or novariance. Do not round intermediate calculations.)Overhead varianceOverhead variance< Required 1Required 3>

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

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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. Overhead Budget 80% Operating Levels 10,000 $ 58,000 $ 68,000 Production in units Budgeted variable overhead Budgeted fixed overhead 1. Compute the standard overhead rate. Hint Standard allocation base at 80% capacity is 20,000 DLH, computed as 10,000 units x 2.00 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance.

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. Overhead Budget 80% Operating Levels 10,000 $ 58,000 $ 68,000 Production in units Budgeted variable overhead Budgeted fixed overhead 1. Compute the standard overhead rate. Hint Standard allocation base at 80% capacity is 20,000 DLH, computed as 10,000 units x 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

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Addison Company budgets production of 2,800 units during the second quarter. Information on its direct labor and its variable and fixed overhead is as follows: Direct labor Each finished unit requires 4 direct labor hours, at a cost of $8 per hour. Variable overhead Budgeted at the rate of $10 per direct labor hour. Fixed overhead Budgeted at $590,000 per quarter. 1. Prepare a direct labor budget.2. Prepare a factory overhead budget.
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3.00 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 $179,660. Overhead Budget Production in units Budgeted variable overhead Budgeted fixed overhead 80% Operating Levels 10,000 $ 81,000 $ 96,000 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.
Western Manufacturing produces a single product. The original budget for April was based on expected production of 25,000 units; actual production for April was 27,500 units. The original budget and actual costs incurred for the manufacturing department follow: Direct materials Direct labor Variable overhead Fixed overhead Total Item Direct materials. Direct labor Variable overhead Fixed overhead Total Original Budget $ 412,500 345,000 147,500 76,000 $981,000 Required: Prepare an appropriate performance report for the manufacturing department. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Original Budget (25,000 units) $ $ Actual Costs $ 451,300 375,500 168,500 68,000 $ 1,063,300 412,500 345,000 147,500 76,000 981,000 Flexed Budget (27,500 units) Actual Cost $451,300 375,500 168,500 68,000 $1,063,300 Variance
Norwall Company's budgeted variable manufacturing overhead cost is $1.05 per machine-hour and its budgeted fixed manufacturing overhead is $27,094 per month. The following information is available for a recent month: a. The denominator activity of 8,740 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 8,740 machine-hours, the company should produce 3,800 units of product. c. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. Note: Round your answers to 2 decimal places. 1. Predetermined overhead rate 1. Variable element 4,220 10,050 2. Compute the standard hours allowed for the actual production. 3. Compute the variable overhead rate and efficiency variances and the fixed overhead budget and volume…
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Steep, Inc. budgeted 8,000 cup holders for March. Each holder is sold for $12. Actual production for March was 8,200 cup holders. Manufacturing overhead is applied based on units produced. Standards and actual costs follow for March: Standards Actual Materials 1.1 pounds @ $2.40 a pound 6,400 pounds purchased for $15,040; 6,450 pounds used Labor 0.10 hours @ $14.00 per hour 620 hours @ $14.30 per hour Variable overhead $8,400 $9,500 Fixed overhead $4,800 $4,850 How much is the overhead controllable variance? $1,355 unfavorable $940 unfavorable $490 unfavorable $490 favorable 940 favorable
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The following data pertains to the month of October for Elm. Co. when production was budgeted to be 5,000 units of P90. P90 has standard costs per unit of: 3 lbs of Direct Materials at a cost of $7.00 per lb; .20 hours of Direct Labor at $18.00 per hour, and variable overhead assigned on the basis of 0.05 machine hours at a rate of $50 per machine hour. Actual production of P90 for October was 4,600 units, using 15,100 lbs of material costing a total of $107,778. A. Determine the direct materials quantity variance. (negative numbers indicate a favorable variance)
The following data pertains to the month of October for ElmCo. when production was budgeted to be 5,000 units of P90. P90 has standard costs per unit of: 3 Ibs. of Direct Materials at a cost of $7.00 per Ib.; 0.20 hours of Direct Labor at $18.00 per hour; and Variable Overhead assigned on the basis of 0.05 machine hours at a rate of $50 per machine hour. In October the production of P90 totaled 4,600 units, using 324 machine hours costing a total of $17,066. Determine the variable overhead spending variance. (Negative numbers indicate a favorable variance.)
Addison Co. budgets production of 2,400 units during the second quarter. Other information is as follows: Direct labor Each finished unit requires 4 direct labor hours, at a cost of $20 per hour. Variable overhead Applied at the rate of $11 per direct labor hour. Fixed overhead Budgeted at $450,000 per quarter. 1. Prepare a direct labor budget.2. Prepare a factory overhead budget.
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