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 Flexible Budget at B0% Capacity 54,250 $ 298,375 54,250 $352,625 Actual Results 50,800 5 361,100 Compute the overhead volume variance. Indicate variance as favorable or unfavorable. Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
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 Flexible Budget at B0% Capacity 54,250 $ 298,375 54,250 $352,625 Actual Results 50,800 5 361,100 Compute the overhead volume variance. Indicate variance as favorable or unfavorable. Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
Chapter1: Financial Statements And Business Decisions
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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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![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
Volume variance
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
Flexible Budget at
B0% Capacity
54,250
Complete this question by entering your answers in the tabs below.
$ 298,375
54,250
$352,625
Required 1 Required 2
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.
Production (in units)
Overhead
Volume Variance
Variable overhead
Fixed overhead
Total overhead
Required 1 Required 2
Required 1
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.
Controllable variance
Actual
Results
50,800
s 361,100
Flexible Budget at
80% Capacity
54,250
$ 298,375
54,250
$352,625
Required 2 >
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
Controllable variance
Complete this question by entering your answers in the tabs below.
< Required 1
Actual
Results
50,000
$.361,100
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 2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1a0ce650-522e-4e23-931d-5d9d4ca1915c%2F79188c2a-9237-42d0-a6ec-46f66468c8b5%2F9i7x0tf_processed.jpeg&w=3840&q=75)
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
Volume variance
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
Flexible Budget at
B0% Capacity
54,250
Complete this question by entering your answers in the tabs below.
$ 298,375
54,250
$352,625
Required 1 Required 2
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.
Production (in units)
Overhead
Volume Variance
Variable overhead
Fixed overhead
Total overhead
Required 1 Required 2
Required 1
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.
Controllable variance
Actual
Results
50,800
s 361,100
Flexible Budget at
80% Capacity
54,250
$ 298,375
54,250
$352,625
Required 2 >
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
Controllable variance
Complete this question by entering your answers in the tabs below.
< Required 1
Actual
Results
50,000
$.361,100
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 2
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