Shaw Incorporated began this period with a budget for 1,050 units of predicted production. The budgeted overhead at this predicted activity follows. At period-end, total actual overhead was $97,500, and actual units produced were 950. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH. Variable ovexhead Tised overhead $ 32,500 42,500 Total overhead $95,000 a. Compute controllable variance. b. Compute volume variance.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Shaw Incorporated began this period with a budget for 1,050 units of predicted production. The budgeted overhead at this predicted
activity follows. At period-end, total actual overhead was $97,500, and actual units produced were 950. The company applies
overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH.
Variable ovexhead
Tixed overhead
$ 32,500
42,500
$ 95,000
Total overhead
a. Compute controllable variance.
b. Compute volume variance.
Transcribed Image Text:Shaw Incorporated began this period with a budget for 1,050 units of predicted production. The budgeted overhead at this predicted activity follows. At period-end, total actual overhead was $97,500, and actual units produced were 950. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH. Variable ovexhead Tixed overhead $ 32,500 42,500 $ 95,000 Total overhead a. Compute controllable variance. b. Compute volume variance.
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