Exercise 21-22 Overhead controllable and volume variances; overhead variance report LO P4 Blaze Corp. applies overhead on the basis of direct labor hours. For the month of March, the company planned production of 10,00 units (80% of its production capacity of 12,500 units) and prepared the following budget. Operating Levels 10,000 20,000 Overhead Budget Production in units Standard direct labor hours Badgeted overhead Variable overhead coats Tudirect aterials $20.000 Maintenance Total variable costs Pixed overhead costs Rent of factory building Depreciation Machinery 30,000 Supervisory salarien Total tixed costs Total overhead coats During March, the company operated at 90% capacity (1,250 units), and it incurred the following actual overhead costs. Indirect labor 25,000 MacBook Air During March, the company operated at 90% capacity (11,250 units), and it incurred the following actual overhead costs. $ 20,000 25.000 6.975 6,120 Overhead costs (actual) Indirect materials Indirect labor Tover Maintenance Rent of factory building Depreciation Machinery Taxes and insurance Supervisory salaries Total atual overhead costs 28.000 $127,395 1. Compute the overhead controllabe variance 2. Compute the overhead volume variance 3. Prepare an overhead variance report at the actual activity level of 9,000 units Complete this question by entering your answers in the tabs below. Required R ed 2 Required) Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) MacBook Air ' WERTYUI LLARININ scompunere uvernead volume variance. 3. Prepare an overhead variance report at the actual activity level of 9,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead controllable variance. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round Intermediate calculations.) 127,395 Controllable Variance Total actual overhead $ Flexible budget overhead Variable $ 32,625 Fixed 122,000 Total Overhead controllable variance $ 154,625 27,230 Favorable Recured 2 Prey 6 of 10 MacBook Air 1. Compute the overhead controllable variance. 2. Compute the overhead volume variance. 3. Prepare an overhead variance report at the actual activity level of 9,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round Intermediate calculations.) Volume Variance Total fixed overhead applied $ 32,625 Total fixed costs 122,000 Volume variance $ (89,375) Unfavorable U JAU L A WEB Amazon.com Onlin. Instant chords for a.. School Related Tas Web ork Save Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round Intermediate calculations.) BLAZE CORP Overhead Variance Report For Month Ended March 31 Expected production volume Production level achieved Volume variance Controllable Variance Variable overhead costs: Flexible Budget Actual Results Variances Fav. Unfav. Fixed overhead costs: Total overhead costs MacBook Air
