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 units) Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 52,250 $ 287,375 52,250 $ 339,625 Required 1 Required 2 Actual Results 47,600 $ 334,700 (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.

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 units) Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 52,250 $ 287,375 52,250 $ 339,625 Required 1 Required 2 Actual Results 47,600 $ 334,700 (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.

Name: Please do not give solution in image format thanku (1) Compute the ove
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Description: Please do not give solution in image format thanku (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 que

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 3PA: What makes a variance favorable? Give an example of a favorable variance involving materials. What...

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Please do not give solution in image format thanku

(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

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 units)
Overhead
Variable overhead
Fixed overhead
Total overhead
Flexible Budget at
80% Capacity
52,250
$ 287,375
52,250
$ 339,625
Volume variance
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
Actual
Results
47,600
Complete this question by entering your answers in the tabs below.
$.334,700
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
Required 1
Required 2 >

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In general, variance analysis is said to provide information about _________ and __________ variances.
1. Describe the basic concepts underlying variance analysis and explain when variances should be investigated give example if necessary.
A diagram showing interrelationships between two or more variables is called a __________. Multiple Choice histogram variance analysis pivottable graph
Explain how the two-, three-, and four-variance overhead analyses are related.
What two factors must be considered when breaking down a variance into its components?
Close the PRIMEVAR4 file and open PRIMEVAR3. Click the Chart sheet tab. On the screen is a graphical representation of the variances computed in requirement 3. Review the chart and answer the following questions: a. Which variances does each bar represent? A __________ B __________ C __________ D __________ b. Which of the variances shown would be of most concern to management for immediate attention? (Consider groups of variances and materiality also.) Explain. When the assignment is complete, close the file without saving it again. Worksheet. McGrade Industries also has the following information regarding overhead for October: actual overhead 375,000, standard variable overhead of 3 per direct labor hour, and standard fixed overhead of 5 per direct labor hour (based on 47,000 hours budgeted). Modify the PRIMEVAR3 worksheet to compute all appropriate overhead variances. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as PRIMEVART. Hint: Insert several new rows in the Data Section and in the Answer Section. Chart. Using the PRIMEVAR3 file, prepare a 3-D stacked bar chart to compare total standard cost per unit with actual cost per unit. Complete the Chart Tickler Data Table and use it as a basis for preparing the chart. You do not need to use cell references when completing the table. Enter all appropriate titles, legends, and formats. Enter your name somewhere on the chart. Save the file again as PRIMEVAR3. Print the chart.
What is the primary difference between the two-variance and three-variance methods of calculation? (appendix)
What makes a variance favorable? Give an example of a favorable variance involving materials. What makes a variance unfavorable? Give an example of an unfavorable variance involving labor.
During the control function, the measurements taken of the performance must be accurate enough to see ________.A. only positive resultsB. deviations and variancesC. the primary focusD. only the negative results
In 2 way variance analysis, materials, labor and variable overhead variances maybe broken down to ________ variances. A. Price and spending B. Quantity and time C. spending and efficiency D. spending and capacity
iv) Labour rate variance v) Labour efficiency variance vi) Overhead variances (both) d.Comment on your calculations produced in c above.
Please do not give solution in image format thanku