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Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 DLH per unit. For March, the
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 8,000 units (80% of its production capacity of 10,000 units) and prepared the following budget. The company actually operated at 90% capacity (9.000 units) in March and incurred actual total overhead costs of $106,145. Overhead Budget Production in units. Budgeted variable overhead Budgeted fixed overhead 80% Operating Levels 8,000 $ 46,000 $ 56,000 1. Compute the standard overhead rate. Hint Standard allocation base at 80% capacity is 20,000 DLH, computed as 8,000 units * 2.50 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3 Required 4 Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 20,000 DLH, computed as 8,000 units x 3 DLH per unit. (Round your answer to 2 decimal places.) Standard overhead rate
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