Shaw Incorporated began this period with a budget for 1,070 units of predicted production. The budgeted overhead at this predict activity follows. At period-end, total actual overhead was $99,700, and actual units produced were 970. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH. $ 53,500 43,500 $ 97,000 Variable overhead Fixed overhead Total overhead a. Compute controllable variance. b. Compute volume variance. Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Please compute controllable variance and volume variance.

Shaw Incorporated began this period with a budget for 1,070 units of predicted production. The budgeted overhead at this predicted
activity follows. At period-end, total actual overhead was $99,700, and actual units produced were 970. The company applies
overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH.
Variable overhead
$ 53,500
Fixed overhead
43,500
Total overhead
$ 97,000
a. Compute controllable variance.
b. Compute volume variance.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Compute controllable variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)
Controllable Variance
Controllable variance
Transcribed Image Text:Shaw Incorporated began this period with a budget for 1,070 units of predicted production. The budgeted overhead at this predicted activity follows. At period-end, total actual overhead was $99,700, and actual units produced were 970. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH. Variable overhead $ 53,500 Fixed overhead 43,500 Total overhead $ 97,000 a. Compute controllable variance. b. Compute volume variance. Complete this question by entering your answers in the tabs below. Required A Required B Compute controllable variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Controllable Variance Controllable variance
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