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Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in Flexible Budget Actual at 80% Capacity Results units) 51,750 46,800 Overhead Variable overhead Fixed overhead $ 284,625 51,750 Total overhead $ 336,375 328,100 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,875 DLH, computed as 51,750 units x 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance Unfavorable

Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in Flexible Budget Actual at 80% Capacity Results units) 51,750 46,800 Overhead Variable overhead Fixed overhead $ 284,625 51,750 Total overhead $ 336,375 328,100 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,875 DLH, computed as 51,750 units x 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance Unfavorable

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 14CE: Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the...
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1 Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. \table[[,\table[[Flexible Budget],[at 80% Capacity]],\table[[Actual],[Results]]],[\table[[Production (in],[units)]],51,750,46,800],[Overhead,,],[\table[[Variable],[overhead]],$284,625,],[Fixed overhead,51,750,],[Total overhead,$336,375,328,100]] Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,875DLH, computed as 51,750 units ×0.5DLH per unit. Compute the standard overhead applied. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) \table[[\table[[1. Standard overhead],[rate]],,],[\table[[2. Standard overhead],[applied]],,],[3. Overhead variance,,Unfavorable] Question #4

Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in Flexible Budget Actual at 80% Capacity Results units) 51,750 46,800 Overhead Variable overhead Fixed overhead $ 284,625 51,750 Total overhead $ 336,375 328,100 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,875 DLH, computed as 51,750 units x 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance Unfavorable
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in Flexible Budget Actual at 80% Capacity Results units) 51,750 46,800 Overhead Variable overhead Fixed overhead $ 284,625 51,750 Total overhead $ 336,375 328,100 1. Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,875 DLH, computed as 51,750 units x 0.5 DLH per unit. 2. Compute the standard overhead applied. 3. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) 1. Standard overhead rate 2. Standard overhead applied 3. Overhead variance Unfavorable
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