Please do not give solution in image format thanku kercise 23-19 (Algo) Overhead controllable and volume variances; overhead variance report LO P4aze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 4 DLH per unit. For March,e company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following budget.he company actually operated at 90% capacity (9,000 units) in March and incurred actual total overhead costs of $83,035.Overhead BudgetProduction in unitsBudgeted variable overhead.Budgeted fixed overhead80% OperatingLevels8,000$ 33,000$ 48,000. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 8,000 units * 4OLH per unit.2. Compute the total overhead variance.Complete this question by entering your answers in the tabs below.Overhead varianceRequired 1 RequiredeethCompute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or novariance. Do not round intermediate calculations.)Overhead variance< Required 1Required 3 > Exercise 23-19 (Algo) Overhead controllable and volume variances; overhead variance report LO P4Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 4 DLH per unit. For Marchthe 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 $83,035.Overhead BudgetProduction in unitsBudgeted variable overheadBudgeted fixed overhead80% OperatingLevels8,000$ 33,000$ 48,0001. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 8,000 units x 4DLH per unit.2. Compute the total overhead variance.Complete this question by entering your answers in the tabs below.Required 1 Required 2Required 3 Required 4Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 30,000 DLH, computed as 8,000units x 4 DLH per unit. (Round your answer to 2 decimal places.)Standard overhead rateRequired 1Required 2 >

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Description: Please do not give solution in image format thanku kercise 23-19 (Algo) Overhead controllable and volume variances; overhead variance report LO P4aze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 4

Standard costs are estimates of the actual costs in a company’s production processThen, the actual…

Answered: Compute the standard overhead rate.…

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Compute the standard overhead rate. Hint Standard allocation base at 80% capacity is 30,000 DLH, computed as 8,000 units x 4 PLH per unit. Compute the total overhead variance.

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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Refer to the data in Exercise 9.15. Required: 1. Compute overhead variances using a two-variance analysis. 2. Compute overhead variances using a three-variance analysis. 3. Illustrate how the two- and three-variance analyses are related to the four-variance analysis. Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours. (Practical capacity is 500,000 hours.) Annual budgeted overhead costs total 787,200, of which 556,800 is fixed overhead. A total of 119,400 units using 478,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were 230,600, and actual fixed overhead costs were 556,250. Required: 1. Compute the fixed overhead spending and volume variances. How would you interpret the spending variance? Discuss the possible interpretations of the volume variance. Which is most appropriate for this example? 2. Compute the variable overhead spending and efficiency variances. How is the variable overhead spending variance like the price variances of direct labor and direct materials? How is it different? How is the variable overhead efficiency variance related to the direct labor efficiency variance?
Calculating factory overhead: two variances Monrovia Manufacturing Inc. normally produces 10,000 units of product A each month. Each unit requires 4 hours of direct labor, and factory overhead is applied on a direct labor hour basis. Fixed costs and variable costs in factory overhead at the normal capacity are 10 and 5 per unit, respectively. Cost and production data for June follow: a. Calculate the flexible-budget variance. b. Calculate the production-volume variance. c. Was the total factory overhead under- or overapplied? By what amount?
Calculating factory overhead: two variances Munoz Manufacturing Co. normally produces 10,000 units of product X each month. Each unit requires 2 hours of direct labor, and factory overhead is applied on a direct labor hour basis. Fixed costs and variable costs in factory overhead at the normal capacity are 2.50 and 1.50 per direct labor hour, respectively. Cost and production data for May follow: a. Calculate the flexible-budget variance. b. Calculate the production-volume variance. c. Was the total factory overhead under- or overapplied? By what amount?
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Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of 6 per unit of fixed overhead and 4 per unit of variable overhead. Normal capacity is 10,000 units. In one month there was a favorable flexible budget variance of 2,500. Actual overhead for the month was 110,000 and actual units produced were 13,125. Based on this information, determine the amount of the budgeted overhead for the actual level of production.
Calculating amount of factory overhead applied to work in process The overhead application rate for a company is 2.50 per unit, made up of 1.00 for fixed overhead and 1.50 for variable overhead. Normal capacity is 10,000 units. In one month, there was an unfavorable flexible budget variance of 200. Actual overhead for the month was 27,000. What was the amount of the budgeted overhead for the actual level of production?
Factory overhead cost variance report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 30,000 hours. During October, the department operated at 28,500 hours, and the factory overhead costs incurred were indirect factory wages, 234,000; power and light, 178,500; indirect materials, 50,600; supervisory salaries, 126,000; depreciation of plant and equipment, 70,000; and insurance and property taxes, 44,000. Instructions Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 28,500 hours.
Direct materials and direct labor variance analysis Lenni Clothing Co. manufactures clothing in a small manufacturing facility. Manufacturing has 25 employees. Each employee presently provides 40 hours of productive labor per week. Information about a production week is as follows: Instructions Determine (A) the standard cost per unit for direct materials and direct labor; (B) the price variance, quantity variance, and total direct materials cost variance; and (C) the rate variance, time variance, and total direct labor cost variance.