Sh18 Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and itsstandard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period.Production (in units)OverheadVariable overheadFixed overheadTotal overheadFlexible Budget at 80%Capacity51,7501. Standard overhead rate2. Standard overhead applied3. Overhead variance$ 284,62551,750$336,375ActualResults46,800$328,100Exercise 23-17 (Algo) Computing standard overhead rate and total overhead variance LO P41. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,875 DLH, computed as 51,750 units0.5 DLH per unit.2. Compute the standard overhead applied.3. Compute the total overhead varlance.Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.

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Description: Sh18 Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and itsstandard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period.Production (in units

Answer : 1. Standard overhead rate : Standard overhead rate = Total overhead at 80% capacity / Total…

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le overhead. overhead overhead $ 284,625 51,750 $336,375 $ 328,100 17 (Algo) Computing standard overhead rate and total overhead

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 14P: Fargo Co. manufactures products in batches of 100 units per batch. The company uses a standard cost...

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Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units) Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 54,250 $ 298,375 54,250 $ 352,625 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance Actual Resulta 50,800 $361,100 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 27,125 DLH, computed as 54,250 units * 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)
Subject: accounting
Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units) Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 51,000 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance $ 280,500 51,000 $ 331,500 Actual Results 45,600 $ 318, 200 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,500 DLH, computed as 51,000 units × 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)
the Fixed overhead capacity variance is nearest to?? A. P4,710 F B. P4,710 UC. P5,110 FD. P5,110 U