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 units) Overhead. Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 50,000 $ 275,000 50,000 $ 325,000 Volume variance Actual Results 44,000 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. $ 305,000 Complete this question by entering your answers in the tabs below. Required 1 Required 1 Required 2 Compute the overhead volume variance. Indicate variance as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Volume Variance Required 2 >
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 units) Overhead. Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 50,000 $ 275,000 50,000 $ 325,000 Volume variance Actual Results 44,000 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. $ 305,000 Complete this question by entering your answers in the tabs below. Required 1 Required 1 Required 2 Compute the overhead volume variance. Indicate variance as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Volume Variance Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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![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 units)
Overhead.
Variable overhead
Fixed overhead
Total overhead
Flexible Budget
at 80% Capacity
50,000
$ 275,000
50,000
$ 325,000
Volume variance
Actual
Results
44,000
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
$ 305,000
Complete this question by entering your answers in the tabs below.
Required 1
Required 1 Required 2
Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.
Volume Variance
Required 2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3b6573af-c4f5-423e-a1c5-ffe94738ef98%2Fe6bd6e42-18c3-4b01-8e87-ce00fa8072f7%2F3yr0175_processed.jpeg&w=3840&q=75)
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 units)
Overhead.
Variable overhead
Fixed overhead
Total overhead
Flexible Budget
at 80% Capacity
50,000
$ 275,000
50,000
$ 325,000
Volume variance
Actual
Results
44,000
(1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
(2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
$ 305,000
Complete this question by entering your answers in the tabs below.
Required 1
Required 1 Required 2
Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.
Volume Variance
Required 2
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