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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 50,500 $ 277,750 50,500 $ 328,250 Actual Results 44,800 $ 311,600 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.

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 50,500 $ 277,750 50,500 $ 328,250 Actual Results 44,800 $ 311,600 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.

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 Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Actual total overhead Budgeted (flexible) overhead Controllable variance Controllable variance
Transcribed Image Text:Required 1 Required 2 Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Actual total overhead Budgeted (flexible) overhead Controllable variance Controllable variance
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 50,500 Required 1 Required 2 $ 277,750 50,500 $ 328,250 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Standard overhead applied Budgeted (flexible) overhead Volume variance Actual Results 44,800 Complete this question by entering your answers in the tabs below. $ 311,600 Volume Variance Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)
Transcribed Image Text: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 50,500 Required 1 Required 2 $ 277,750 50,500 $ 328,250 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Standard overhead applied Budgeted (flexible) overhead Volume variance Actual Results 44,800 Complete this question by entering your answers in the tabs below. $ 311,600 Volume Variance Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)
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