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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 >
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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