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Exercise 2 1 - 1 9 ( Algo ) Overhead controllable and volume variances LO P 4 Blaze Corporation allocates overhead on the basis of

Exercise 21-19(Algo) Overhead controllable and volume variances LO P4
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2.00DLH 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 $127,395.
Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 20,000DLH, computed as 10,000 units
2.00DLH per unit.
Compute the total overhead variance.
Compute the overhead controllable variance.
Compute the overhead controllable variance.
Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate
calculations.
Compute the overhead volume variance.
Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate
calculations.
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