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Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2.50 DLH per unit. For March, the company
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2.50 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 Production in units Budgeted variable overhead Budgeted fixed overhead 80% Operating Levels 9,600 $ 36,000 $ 48,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Standard overhead rate Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 24,000 DLH, computed as 9,600 units x 2.50 DLH per unit. Note: Round your answer to 2 decimal places.
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