Use the following information for the Exercises below. (Algo) [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 standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Flexible Budget at 80% Capacity 53,750 Actual Results 50,000 Production (in units) Overhead Variable overhead Fixed overhead Total overhead $ 295,625 53,750 $ 349,375 $ 354,500 rcise 21-18 (Algo) Volume and controllable variances LO P4 ompute the overhead volume variance. Indicate variance as favorable or unfavorable. ompute the overhead controllable variance. Indicate variance as favorable or unfavorable.
Use the following information for the Exercises below. (Algo) [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 standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Flexible Budget at 80% Capacity 53,750 Actual Results 50,000 Production (in units) Overhead Variable overhead Fixed overhead Total overhead $ 295,625 53,750 $ 349,375 $ 354,500 rcise 21-18 (Algo) Volume and controllable variances LO P4 ompute the overhead volume variance. Indicate variance as favorable or unfavorable. ompute the overhead controllable variance. Indicate variance as favorable or unfavorable.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 19E: The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month....
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
![Use the following information for the Exercises below. (Algo)
[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.
Flexible Budget at
80% Сарасity
53,750
Actual
Results
50,000
Production (in units)
Overhead
Variable overhead
Fixed overhead
Total overhead
$ 295,625
53,750
$ 349,375
$ 354,500
Exercise 21-18 (Algo) Volume and controllable variances LO P4
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
X Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance
by selecting favorable, unfavorable, or no variance.)
Volume Variance
Standard overhead applied
$
53,750
Budgeted (flexible) overhead
50,000 X
Volume variance
$
3,750 V
Unfavorable
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d0518dd-c44c-4451-960f-406d75fa6034%2F48202c5b-94a3-40c4-9515-2185971fe783%2Ftdazv37_processed.png&w=3840&q=75)
Transcribed Image Text:Use the following information for the Exercises below. (Algo)
[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.
Flexible Budget at
80% Сарасity
53,750
Actual
Results
50,000
Production (in units)
Overhead
Variable overhead
Fixed overhead
Total overhead
$ 295,625
53,750
$ 349,375
$ 354,500
Exercise 21-18 (Algo) Volume and controllable variances LO P4
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
X Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the variance
by selecting favorable, unfavorable, or no variance.)
Volume Variance
Standard overhead applied
$
53,750
Budgeted (flexible) overhead
50,000 X
Volume variance
$
3,750 V
Unfavorable
< Required 1
Required 2 >
![Use the following information for the Exercises below. (Algo)
[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.
Flexible Budget at
80% Сарасity
53,750
Actual
Results
50,000
Production (in units)
Overhead
Variable overhead
Fixed overhead
Total overhead
$ 295,625
53,750
$ 349,375
$ 354,500
Exercise 21-18 (Algo) Volume and controllable variances LO P4
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
X Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the
variance by selecting favorable, unfavorable, or no variance.)
Controllable variance
50,000 X
53,750 X
Actual total overhead
$
Budgeted (flexible) overhead
Controllable variance
25,750
Unfavorable
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d0518dd-c44c-4451-960f-406d75fa6034%2F48202c5b-94a3-40c4-9515-2185971fe783%2F2r3qjhs_processed.png&w=3840&q=75)
Transcribed Image Text:Use the following information for the Exercises below. (Algo)
[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.
Flexible Budget at
80% Сарасity
53,750
Actual
Results
50,000
Production (in units)
Overhead
Variable overhead
Fixed overhead
Total overhead
$ 295,625
53,750
$ 349,375
$ 354,500
Exercise 21-18 (Algo) Volume and controllable variances LO P4
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
X Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. (Indicate the effect of the
variance by selecting favorable, unfavorable, or no variance.)
Controllable variance
50,000 X
53,750 X
Actual total overhead
$
Budgeted (flexible) overhead
Controllable variance
25,750
Unfavorable
< Required 1
Required 2 >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,