Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units) Overhead Variable overhead. Fixed overhead Total overhead Flexible Budget at 80% Capacity 54,500 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance $ 299,750 54,500 $ 354,250 $ $ $ Actual Results 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 27,250 DLH, computed as 54,500 units x 0.5 DLH per unit. 51,200 2. Compute the standard overhead applied. 3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) 13 51,200 3,300 Unfavorable $ 364,400 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Budgeted (flexible) overhead Total actual overhead cost Volume variance Volume Variance $ 336,100 < Required 1 Required 2 > Required 1 Required 2 Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Controllable variance Controllable variance Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units) Overhead Variable overhead. Fixed overhead Total overhead Flexible Budget at 80% Capacity 54,500 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance $ 299,750 54,500 $ 354,250 $ $ $ Actual Results 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 27,250 DLH, computed as 54,500 units x 0.5 DLH per unit. 51,200 2. Compute the standard overhead applied. 3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) 13 51,200 3,300 Unfavorable $ 364,400 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Budgeted (flexible) overhead Total actual overhead cost Volume variance Volume Variance $ 336,100 < Required 1 Required 2 > Required 1 Required 2 Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Controllable variance Controllable variance
Expert Answer:
Answer rating: 100% (QA)
1 Compute the standard overhead rate Hint Standard allocation base at 80 capacity is 27250 DLH compu... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the...
-
Shaw Co. produced 680 units. Its overhead allocation base is DLH and its standard amount per allocation base is 8 DLH per unit. Its standard overhead rate is $10 per DLH. The flexible overhead budget...
-
Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the...
-
Compute the stone's average velocity over the time interval [0.5, 2.5] and indicate the corresponding secant line on a sketch of the graph of h(t). A stone is tossed vertically into the air from...
-
What is Bayes theorem, and when can it be used?
-
Seven balls are randomly withdrawn from an urn that contains 12 red, 16 blue, and 18 green balls. Find the probability that (a) 3 red, 2 blue, and 2 green balls are withdrawn; (b) At least 2 red...
-
The annual report for Costco Wholesale Corporation, the large discount company, contains the following statement: The company periodically evaluates the realizability of long-lived assets for...
-
Project managers must not only calculate variances but also determine the root cause of the variance. Some variances may be allowable while others must be explained together with a corrective plan...
-
At the beginning of the year Ham Inc.'s management is considering making an offer to buy Egg Corporation. Egg's projected operating income (EBIT) for the current year is $30 million, but Ham believes...
-
Citigroup Inc. (Citi) is a leading global financial services company with over 200 million customer accounts and operations in more than 140 countries. Its operating units Citicorp and Citi Holdings...
-
Describe the following concepts and give three (3) examples of how to demonstrate each of these concepts when engaging with diverse clients as well as Aboriginal and/or Torres Strait Islander people...
-
What is MTSS, Define the characteristics and main elements of MTSS Define the characteristics and main elements of MTSS Outline the data that supports it being used in the classroom & building &...
-
Explain how functional attributes and psychological attributes determine the level of customer satisfaction in the post-purchase? In your opinion, do all customers give the same importance to each...
-
What recommendations for continuous improvement would you as a Subject Matter Expert (SME) propose to T-Mobile?
-
Would you consider age, health and other considerations to be biases? Is it not possible to truly objectively assess your risk attitude? Do you think that our experiences make us more conservative...
-
Discuss the history of labor unions. Explain the logistical considerations for expatriate assignments. Explain employee rights. Describe the process of collective bargaining. What do you see as...
-
Reduction of poverty and promoting gender equality are tenets of: Group of answer choices non-governmental organizations. sustainable development. adaptive management. environmental literacy
-
Outline a general process applicable to most control situations. Using this, explain how you would develop a system to control home delivery staff at a local pizza shop.
-
The following information is available for both Pulaski Company and Scott Company at the current year-end. Required 1. Compute the debt-to-equity ratio for both companies. 2. Which company has the...
-
Romero issues $3,400,000 of 10%, 10-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,010,000. Required 1. Prepare the...
-
SmartSweets, launched by entrepreneur Tara Bosch as described in this chapters opener, makes gummy candy without sugar and from all-natural ingredients. Required 1. Identify at least two fixed costs...
-
The U. S. dollar. The primary reason for using the dollar was that it provided a relatively stable benchmark, and it was accepted universally for transaction purposes.
-
Compare investments with different cash flows and residual values (Learning Objectives 2, 4) Java Cafe is considering two possible expansion plans. Plan A is to open eight cafes at a cost of...
-
Evaluate an investment using all four methods (Learning Objectives 2, 4) Zippi manufactures motorized scooters in Oakland, California. The company is con sidering an expansion. The plan calls for a...
Study smarter with the SolutionInn App