Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 2 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. 89% Operating Overhead Budget Levels Production in units 9,600 Budgeted variable overhead $36, eee Budgeted fixed overhead $ 48,00 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 24.000 DLH, computed as 9.600 units x 2 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 Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 24,000 DLH, computed as 9,500 units * 3 DLH per unit. (Round your answer to 2 decimal places.) Standard overhead rate Required 1 Required 2 > 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 Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) Overhead variance 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 Compute the overhead controllable variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) Controllable Variance Actual total overhead Budgeted flexible overhead Total 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 Compute the overhead volume variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) Volume Variance Volume variance
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!