Shaw Incorporated began this period with a budget for 1,140 units of predicted production. The budgeted overhead at this predicte activity follows. At period-end, total actual overhead was $107,400, and actual units produced were 1,040. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH. Variable overhead Fixed overhead Total overhead $ 57,000 47,000 $ 104,000 a. Compute controllable variance. b. Compute volume variance. Complete this question by entering your answers in the tabs below.
Shaw Incorporated began this period with a budget for 1,140 units of predicted production. The budgeted overhead at this predicte activity follows. At period-end, total actual overhead was $107,400, and actual units produced were 1,040. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH. Variable overhead Fixed overhead Total overhead $ 57,000 47,000 $ 104,000 a. Compute controllable variance. b. Compute volume variance. Complete this question by entering your answers in the tabs below.
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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![Shaw Incorporated began this period with a budget for 1,140 units of predicted production. The budgeted overhead at this predicted
activity follows. At period-end, total actual overhead was $107,400, and actual units produced were 1,040. The company applies
overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH.
Variable overhead
Fixed overhead
Total overhead
$ 57,000
47,000
$ 104,000
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
$
107,400
Actual total overhead
Budgeted (flexible) overhead at units produced
Controllable variance
Unfavorable
<Required A
Required B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67646688-938c-4a0f-9a80-1d1e4986dbfe%2Fe05d0601-da93-4eac-9daf-a831c28f5bd5%2Fxysuq6x_processed.png&w=3840&q=75)
Transcribed Image Text:Shaw Incorporated began this period with a budget for 1,140 units of predicted production. The budgeted overhead at this predicted
activity follows. At period-end, total actual overhead was $107,400, and actual units produced were 1,040. The company applies
overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH.
Variable overhead
Fixed overhead
Total overhead
$ 57,000
47,000
$ 104,000
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
$
107,400
Actual total overhead
Budgeted (flexible) overhead at units produced
Controllable variance
Unfavorable
<Required A
Required B >
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