Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3.75 DLH per unit. For March, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following budget. The company actually operated at 90% capacity (9,000 units) in March and incurred actual total overhead costs of $151,410. Overhead Budget Production in units Budgeted variable overhead Budgeted fixed overhead 80% Operating Levels 8,000 $ 66,000 $ 81,000 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 8,000 units 3.75 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 3.75 DLH per unit. For March, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following budget. The company actually operated at 90% capacity (9,000 units) in March and incurred actual total overhead costs of $151,410. Overhead Budget Production in units Budgeted variable overhead Budgeted fixed overhead 80% Operating Levels 8,000 $ 66,000 $ 81,000 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 8,000 units 3.75 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance.

Name: Exercise 21-19 (Algo) Overhead controllable and volume variances LO P
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Description: Exercise 21-19 (Algo) Overhead controllable and volume variances LO P4Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3.75 DLH per unit. ForMarch, the company planned production of 8,000 units

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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