Blaze Corp. applies overhead on the basis of direct labor hours. For the month of March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget. Operating Levels 80% 10,000 30,000 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation-Machinery Taxes and insurance Supervisory salaries Total fixed costs Total overhead costs $13,200 16,600 7,000 5,200 42,000 16,000 25,000 2,300 13,700 57,000 $99,000 During March, the company operated at 90% capacity (11,250 units), and it incurred the following actual overhead costs. Overhead costs (actual) Indirect materials $ 13,200 Indirect labor 16,600 Power 7,875 Maintenance 6,800 Rent of factory building 16,000 Depreciation-Machinery 19,550 Taxes and insurance 3,100 Supervisory salaries 20,300 Total actual overhead costs $103,425 1. Compute the overhead controllable variance. 2. Compute the overhead volume variance. 3. Prepare an overhead variance report at the actual activity level of 9,000 units. Complete this question by entering your answers in the tabs below. 1. Compute the overhead controllable variance. 2. Compute the overhead volume variance. 3. Prepare an overhead variance report at the actual activity level of 9,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead controllable variance. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) Controllable Variance Total actual overhead $ 103,425 Flexible budget overhead Variable $ 37,800 Fixed 57,000 Total 94.800 Overhead controllable variance $ 8,625 Favorable 1. Compute the overhead controllable variance. 2. Compute the overhead volume variance. 3. Prepare an overhead variance report at the actual activity level of 9,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) Volume Variance Total budgeted fixed OH $ 57,000 Total fixed overhead applied 64,125 Volume variance 7,125 Favorable $ Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) BLAZE CORP Overhead Variance Report For Month Ended March 31 80% of capacity 90% of capacity $ 7,125 Favorable Flexible Budget Actual Results Variances Fav. / Unfav. Expected production volume Production level achieved Volume variance Controllable Variance Variable overhead costs: Indirect materials Indirect labor Power Maintenance 14,850 18,675 7,650 7,650 13,200 30,000 7,650 6,800 1,650 Favorable 11,325 Favorable No variance 850 Unfavorable 48,825 57,650 Favorable Total variable costs Fixed overhead costs: Rent of factory building DepreciationMachinery 16,000 28,125 16,000 21,993 No variance 6,132 Favorable Supervisory salaries 13,700 20,300 6,600 Unfavorable Total fixed costs Total overhead costs 57,825 106,650 $ 58,293 115,943 Unfavorable Favorable $
