Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

20 Exercise 8-19 (Algo) Overhead controllable and volume variances; overhead variance report LO P4 hints Blaze Corporation allocates overhead on the basis of DLH and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
20 Exercise 8-19 (Algo) Overhead controllable and volume variances; overhead variance report LO P4 hints Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 DLH per unit For March the company planned production of 9,600 units (80% of its production capacity of 12,000 units) and prepared the following budget The company actually operated at 90% capacity (10,800 units) in March and incurred actual total overhead costs of $87,025. Overhead Budget sex Operating Levels Production in units 9.600 Budgeted variable overhead $36.000 Budgeted fixed overhead $ 48,00 1. Compute the standard overhead rate Hint Standard allocation base at 80% capacity is 24,000 DLH, computed as 9,600 units 2.50 DLH per unit 2. Compute the total overhead variance 3. Compute the overhead controllable variance 4. Compute the overhead volume variance. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavo Do not round intermediate calculations.) Overhead variance Actual total overhead $ Standard overhead applied Overhead variance $ 87,025 84,000 X 3,025 Favorable X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the overhead controllable variance. (Indicate the effect of the variance by selecting favo variance. Do not round intermediate calculations.) 87,025 Controllable Variance Actual total overhead $ Budgeted flexible overhead Variable overhead $ 36,000 Fixed overhead 48,000 Total Controllable variance 84,000 3,025 Favorable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Credit Risk Of Complex Derivatives

Authors: Erik Banks

3rd Edition

1403916691, 9781403916693

More Books

Students also viewed these Accounting questions

Question

Understand the duPont method of profitability analysis

Answered: 1 week ago

Question

Write a Python program to check an input number is prime or not.

Answered: 1 week ago