The company will operate at 80% of Capacity. The overhead allocation Base is DLH and the standard amount per allocation base is .5 DHL per unit. The company reports the following: Flex Budget at 80% Production in units: 52,000 Variable OH: $286,000 Fixed OH: $52,000 Total OH: $338,000 Actual Results Production in units: 47,200 Total OH: $331,400 Questions: 1) Compute OH Volume Variance 2) Compute OH Controllable Variance
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
The company will operate at 80% of Capacity. The
The company reports the following:
Flex Budget at 80%
Production in units: 52,000
Variable OH: $286,000
Fixed OH: $52,000
Total OH: $338,000
Actual Results
Production in units: 47,200
Total OH: $331,400
Questions:
1) Compute OH Volume Variance
2) Compute OH Controllable Variance
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
