Shaw Company produced 730 units, Its overhead allocation base is DLH and its standard amount per allocation base is 8 DLH per unit ts standard overhead rate is $10 per DLH. The fexible overhead budget at an activity level of 730 units shows $28,500 in variable overhead costs and $32.500 in fed overhead costs Compute the volume variance. Indicate the effect of the variance by selecting favorable, unfavorable, or no variance)
Shaw Company produced 730 units, Its overhead allocation base is DLH and its standard amount per allocation base is 8 DLH per unit ts standard overhead rate is $10 per DLH. The fexible overhead budget at an activity level of 730 units shows $28,500 in variable overhead costs and $32.500 in fed overhead costs Compute the volume variance. Indicate the effect of the variance by selecting favorable, unfavorable, or no variance)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 2CMA: Marten Company has a cost-benefit policy to investigate any variance that is greater than 1,000 or...
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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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![Shaw Company produced 730 units. Its overhead allocation base is DLH and its standard amount per allocation base is 8 DLH per unt
hs standard overhead rate is $10 per DLH. The flexible overhead budget at an activity level of 730 units shows $28,500 in variable
overhead costs and $32.500 in fed overhead costs. Compute the volume variance. fIndicate the effect of the variance by selecting
favorable, unfavorable, or no variance)
Vlume Verianes
Volume vartance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7b9130d-6f4c-488f-acbd-4a4531cbbc36%2F30869692-7e2a-4f7f-a3f9-32c93861a04f%2F4mr4cf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Shaw Company produced 730 units. Its overhead allocation base is DLH and its standard amount per allocation base is 8 DLH per unt
hs standard overhead rate is $10 per DLH. The flexible overhead budget at an activity level of 730 units shows $28,500 in variable
overhead costs and $32.500 in fed overhead costs. Compute the volume variance. fIndicate the effect of the variance by selecting
favorable, unfavorable, or no variance)
Vlume Verianes
Volume vartance
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