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0 Required Information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its
0 Required Information [The following information applies to the questions displayed below.] 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 54,000 $ 297,000 54,000 $ 351,000 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance Actual Results 50,400 $ 357,800 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 27,000 DLH, computed as 54,000 units * 0.5 DLH per unit. 2 Compute the standard overhead applied. 3. Compute the total overhead variance. Note: Indicate the effect of the varlance by selecting favorable, unfavorable, or no varlance. hs Required Informetion [The foliowing information applies to the questions displayed below] Manuel Company predicts it will operate at 805 of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5DLH per unit, The company reports the following for this period. 1. Compute the standard overhead rate. Hint Standard allocaton base at 805 copacty is 27,000 DLH, computed as 54,000 units * o 5 DLH per unit 2. Compute the standard overhesd applied 3. Compute the total overhead variance Note: Indicote the effect of the verlance by selecting fovorable, unfoverable, or no variance
0 Required Information [The following information applies to the questions displayed below.] 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 54,000 $ 297,000 54,000 $ 351,000 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance Actual Results 50,400 $ 357,800 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 27,000 DLH, computed as 54,000 units * 0.5 DLH per unit. 2 Compute the standard overhead applied. 3. Compute the total overhead variance. Note: Indicate the effect of the varlance by selecting favorable, unfavorable, or no varlance. hs
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