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Exercise 23-21 Overhead controllable and volume variances; overhead variance report LO P3 James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget 808 uetion in units 10,000 25,000 Standard direct labor hours Variable overhead costs $18,000 25,000 5,000 2,000 50,000 Indirect materials Indirect labor Power Total variable costs Pixed overhead costs 18,000 11,500 15,500 45,000 $95,000 Rent of factory building Deprecia Supervisory salaries Total fixed costs hinery During May, the company operated at 90% capacity (11,250 units) and incurred the following actual overhead costs 18,000 27,875 5, 625 3,065 Indirect materials Indirect labor Power Maintenance Rent of factory building 11,500 18,500 hinery 181500 2. Compute the overhead volume variance. Next K Prev 2 of 13 s 18,000 27,875 5,625 3,065 18,000 11,500 18,500 $102,565 Indirect labor Power Rent of factory building Supervisory salaries hinery 1. Compute the overhead controllable variance. 2. Compute the overhead volume variance. 3. Prepare an overhead variance report at the actual activity level of 11,250 units. Complete this question by entering your answers in the tabs below. Compute the overhead controllable variance. Classify as favorable or unfavorable Total Required 2 During May, the company operated at 90% capacity (11,250 units) and incurred the following actual overhead costs: Indirect materials s 18,000 27,875 5,625 3,065 18,000 11,500 18,500 $102,565 Labor Power Rent of factory building Supervisory salaries 1. Compute the overhead controllable variance. 2. Compute the overhead volume variance. 3. Prepare an overhead variance report at the actual activity level of 11,250 units. Complete this question by entering your answers in the tabs below. Compute the overhead volume variance. Classify as favorable or unfavorable. (Do not round intermediate calculations.) Va Required 3> K Required 1 1 Required 2 Required 3 variance report at the actual activity level of 11,250 units. Classify as favorable or unfavorable. (Do not an ate calculations.) Overhead Variance Report For Exercise 23-19 Computation of total overhead rate and total overhead variance LO P3 World Company expects to operate at 60% of its productive capacity of 32,000 units per rmonth. At this planned level, the company expects to use 12,000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.625 direct labor hours per unit. At the 60% capacity level, the total budgeted cost includes $36,000 fixed overhead cost and $120,000 variable overhead cost. In the current month, the company incurred $116,000 actual overhead and 5,760 actual labor hours while producing 9,400 units. (Do not round intermediate calculations. Round "OH costs per DL hour" to 2 decimal places.) e the OH rate Actual Variance Fav./Unf. ap ied results DL K Prev 3 of 13E Next >
