Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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. 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 20,000 DLH, computed as 8,000 units x 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. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity Is 20,000 DLH, computed as 8,000 units 3 DLH per unit. (Round your answer to 2 decimal ploces.) Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 DLH per unit. For Mar the company planned production of 8,000 units ( 80% of its production capacity of 10,000 units) and prepared the following budge The company actually operated at 90% capacity (9.000 units) in March and incurred actual total overhead costs of $106,145. 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 20,000DLH, computed as 8,000 units x 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. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 20,000DLH, computed as 8,000 unit 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. Compute the overhead controllable variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) 1. Compute the standard overhead rate. Hint Standard allocation base at 80% capacity is 20,000 DLH, computed as 8,000 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. Compute the overhead volume variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.)

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

Accounting Ethics A Practical Approach

Authors: Howard J Levine

1st Edition

0692112898, 9780692112892

More Books

Students also viewed these Accounting questions