Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 4 DLH per unit. For March, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following budget. The company actually operated at 90% capacity (9,000 units) in March and incurred actual total overhead costs of $83,035. 80% Operating Levels Overhead Budget Production in units 8,000 Budgeted variable overhead Budgeted fixed overhead $ 33,000 $ 48,000 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 8,000 units x 3.75 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance.

Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 4 DLH per unit. For March, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following budget. The company actually operated at 90% capacity (9,000 units) in March and incurred actual total overhead costs of $83,035. 80% Operating Levels Overhead Budget Production in units 8,000 Budgeted variable overhead Budgeted fixed overhead $ 33,000 $ 48,000 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 8,000 units x 3.75 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance.

Name: Exercise 21-19 (Algo) Overhead controllable and volume variances LO P
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Description: Exercise 21-19 (Algo) Overhead controllable and volume variances LO P4Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 4 DLH per unit. For March,the company planned production of 8,000 units (80

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 16E: Refer to the data in Exercise 9.15. Required: 1. Compute overhead variances using a two-variance...

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