Required 1 Required 2 Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Volume Variance Standard overhead applied 53,750 50,000 X 3,750 V Unfavorable Standard overhead applied Volume variance K Required 1 Required 2 >
Required 1 Required 2 Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Volume Variance Standard overhead applied 53,750 50,000 X 3,750 V Unfavorable Standard overhead applied Volume variance K Required 1 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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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.)
Controllable variance
Total overhead applied
354,500
Actual total overhead
328,750
Controllable variance
25,750
Unfavorable
< Required 1
Required 2 >
![Required intormation
Use the following information for the Exercises below. (Algo)
[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.
Flexible Budget at
80% Capacity
53,750
Actual
Results
50,000
Production (in units)
Overhead
Variable overhead
Fixed overhead
Total overhead
$ 295,625
53,750
$ 349,375
$ 354,500
Exercise 21-18 (Algo) Volume and controllable variances LO P4
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
X Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance
by selecting favorable, unfavorable, or no variance.)
Volume Variance
Standard overhead applied
$
53,750 X
Standard overhead applied
(X
50,000 X
Volume variance
$
3,750
Unfavorable
< Required 1
Required 2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d0518dd-c44c-4451-960f-406d75fa6034%2F46b1d942-7d50-498d-b579-3d0eb5e6a4dd%2F30zjwmb_processed.png&w=3840&q=75)
Transcribed Image Text:Required intormation
Use the following information for the Exercises below. (Algo)
[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.
Flexible Budget at
80% Capacity
53,750
Actual
Results
50,000
Production (in units)
Overhead
Variable overhead
Fixed overhead
Total overhead
$ 295,625
53,750
$ 349,375
$ 354,500
Exercise 21-18 (Algo) Volume and controllable variances LO P4
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
X Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance
by selecting favorable, unfavorable, or no variance.)
Volume Variance
Standard overhead applied
$
53,750 X
Standard overhead applied
(X
50,000 X
Volume variance
$
3,750
Unfavorable
< Required 1
Required 2
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