Shaw Incorporated began this period with a budget for 1,040 units of predicted production. The budgeted...

 

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Shaw Incorporated began this period with a budget for 1,040 units of predicted production. The budgeted overhead at this predicted activity follows. At period-end, total actual overhead was $96,400, and actual units produced were 940. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH. Variable overhead $ 52,000 Fixed overhead 42,000 $ Total overhead 94,000 a. Compute controllable variance. b. Compute volume variance. Shaw Incorporated began this period with a budget for 1,040 units of predicted production. The budgeted overhead at this predicted activity follows. At period-end, total actual overhead was $96,400, and actual units produced were 940. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH. Variable overhead $ 52,000 Fixed overhead 42,000 $ Total overhead 94,000 a. Compute controllable variance. b. Compute volume variance.

Answer rating: 100% (QA)

a Controllable Variance Controllable variance measures the difference between the actual overhea... View the full answer