FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Exercise 21-24 (Static) Controllable and volume variances LO P4
Shaw Incorporated began this period with a budget for 1,000 units of predicted production. The budgeted overhead at this predicted
activity follows. At period-end, total actual overhead was $92,000, and actual units produced were 900. The company applies
overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH.
Variable overhead
Fixed overhead
$ se, eee
40,000
Total overhead
$ 90, ee0
a. Compute controllable variance.
b. Compute volume variance.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Compute volume variance. (Indicate the effect of the varlance by selecting favorable, unfavorable, or no varlance.)
Volume Variance
Standard overhead applied
Budgeted (fexible) overhead at units produced
85,000
Volume variance
Unfavorable
< Required A
Required B>
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Transcribed Image Text:Exercise 21-24 (Static) Controllable and volume variances LO P4 Shaw Incorporated began this period with a budget for 1,000 units of predicted production. The budgeted overhead at this predicted activity follows. At period-end, total actual overhead was $92,000, and actual units produced were 900. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH. Variable overhead Fixed overhead $ se, eee 40,000 Total overhead $ 90, ee0 a. Compute controllable variance. b. Compute volume variance. Complete this question by entering your answers in the tabs below. Required A Required B Compute volume variance. (Indicate the effect of the varlance by selecting favorable, unfavorable, or no varlance.) Volume Variance Standard overhead applied Budgeted (fexible) overhead at units produced 85,000 Volume variance Unfavorable < Required A Required B>
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