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% 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 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.
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% 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 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.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 50E: Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces...
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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.
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
Controllable variance
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d0518dd-c44c-4451-960f-406d75fa6034%2Fb1bae71a-078e-433e-bf8e-aafc705bc7b5%2Fvwzfni9u_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.
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
Controllable variance
< 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.
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
Volume variance
Required 1
Required 2
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d0518dd-c44c-4451-960f-406d75fa6034%2Fb1bae71a-078e-433e-bf8e-aafc705bc7b5%2Fc1olr2n_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.
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
Volume variance
Required 1
Required 2
>
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