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Exercise 21-19 (Algo) Overhead controllable and volume variances LO P4 Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 4 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 $83,035. Overhead Budget Production in units Budgeted variable overhead Budgeted fixed overhead 80% Operating Levels 8,000 $ 33,000 $ 48,000 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.

Exercise 21-19 (Algo) Overhead controllable and volume variances LO P4 Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 4 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 $83,035. Overhead Budget Production in units Budgeted variable overhead Budgeted fixed overhead 80% Operating Levels 8,000 $ 33,000 $ 48,000 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.

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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Required 1 Required 2 Required 3 Required 4 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 Show Transcribed Text Actual total overhead Budgeted flexible overhead Overhead variance 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 Controllable Variance Show Transcribed Text Volume variance Ĉ 0 Required 1 Required 2 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
Transcribed Image Text:Required 1 Required 2 Required 3 Required 4 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 Show Transcribed Text Actual total overhead Budgeted flexible overhead Overhead variance 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 Controllable Variance Show Transcribed Text Volume variance Ĉ 0 Required 1 Required 2 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
Exercise 21-19 (Algo) Overhead controllable and volume variances LO P4 Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 4 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 $83,035. 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 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. Required 1 Required 2 8,000 $ 33,000 $ 48,000 Complete this question by entering your answers in the tabs below. Standard overhead rate Required 3 Required 4 Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 30,000 DLH, computed as 8,000 units x 4 DLH per unit. (Round your answer to 2 decimal places.)
Transcribed Image Text:Exercise 21-19 (Algo) Overhead controllable and volume variances LO P4 Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 4 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 $83,035. 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 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. Required 1 Required 2 8,000 $ 33,000 $ 48,000 Complete this question by entering your answers in the tabs below. Standard overhead rate Required 3 Required 4 Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 30,000 DLH, computed as 8,000 units x 4 DLH per unit. (Round your answer to 2 decimal places.)
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