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 3 DLH per unit. For March, the company

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3 DLH per unit. For March, the company planned production of 10,000 units ( 80% of its production capacity of 12,500 units) and prepared the following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual total overhead costs of $121,600. 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000DLH, computed as 10,000 units 3.00DLH 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 30,000 DLH, computed as 10,000 units 3 DLH per unit. (Round your answer to 2 decimal places.) Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) Compute the overhead controllable variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) 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_2

Step: 3

blur-text-image_3

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 Audit Process Principles Practice And Cases

Authors: Iain Gray, Stuart Manson

3rd Edition

1861529465, 9781861529466

More Books

Students also viewed these Accounting questions