Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3.75 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 $151,410. Overhead Budget Production in units Budgeted variable overhead Budgeted fixed overhead 80% Operating Levels 8,000 $ 66,000 $ 81,000 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 8,000 units 3.75 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance.

Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3.75 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 $151,410. Overhead Budget Production in units Budgeted variable overhead Budgeted fixed overhead 80% Operating Levels 8,000 $ 66,000 $ 81,000 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 8,000 units 3.75 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume 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 3.75 DLH per unit. ForMarch, the company planned production of 8,000 units

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 16E: Thomas Textiles Corporation began November with a budget for 60,000 hours of production in the...

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