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 52,000 $ 286,000 52,000 $ 338,000 Actual Results 47,200 $ 331,400 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below.]
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
Required 1
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
Required 2
Required
Complete this question by entering your answers in the tabs below.
Budgeted (flexible) overhead
Standard overhead applied
Volume variance
Flexible Budget at
80% Capacity
52,000
$ 286,000
52,000
$ 338,000
Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.
Required
Volume Variance
$
Controllable variance
311,600
Actual
Results
47,200
< Required 1
$ 331,400
Complete this question by entering your answers in the tabs below.
Controllable variance
Unfavorable
Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.
< Required 1
Required 2 >
Required 2 >
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] 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 Required 1 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Required 2 Required Complete this question by entering your answers in the tabs below. Budgeted (flexible) overhead Standard overhead applied Volume variance Flexible Budget at 80% Capacity 52,000 $ 286,000 52,000 $ 338,000 Compute the overhead volume variance. Indicate variance as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Required Volume Variance $ Controllable variance 311,600 Actual Results 47,200 < Required 1 $ 331,400 Complete this question by entering your answers in the tabs below. Controllable variance Unfavorable Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. < Required 1 Required 2 > Required 2 >
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