Shaw Incorporated began this period with a budget for 1,070 units of predicted production. The budgeted overhead at this predicted activity follows. At period-end, total actual overhead was $99,700, and actual units produced were 970. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH. $ 53,500 43,500 Variable overhead Fixed overhead Total overhead $ 97,000 a. Compute controllable variance. b. Compute volume variance. Complete this question by entering your answers in the tabs below. Reguired A Required B Compute controllable variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Controllable Variance Actual total overhead $ 99,700 Budgeted (flexible) overhead at units produced Controllable variance Unfavorable
Shaw Incorporated began this period with a budget for 1,070 units of predicted production. The budgeted overhead at this predicted activity follows. At period-end, total actual overhead was $99,700, and actual units produced were 970. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH. $ 53,500 43,500 Variable overhead Fixed overhead Total overhead $ 97,000 a. Compute controllable variance. b. Compute volume variance. Complete this question by entering your answers in the tabs below. Reguired A Required B Compute controllable variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Controllable Variance Actual total overhead $ 99,700 Budgeted (flexible) overhead at units produced Controllable variance Unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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I need the amount for the Budgeted (flexible)
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Transcribed Image Text:Shaw Incorporated began this period with a budget for 1,070 units of predicted production. The budgeted overhead at this predicted
activity follows. At period-end, total actual overhead was $99,700, and actual units produced were 970. The company applies
overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH.
$ 53,500
43,500
$ 97,000
Variable overhead
Fixed overhead
Total overhead
a. Compute controllable variance.
b. Compute volume variance.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Compute controllable variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)
Controllable Variance
Actual total overhead
$
99,700
Budgeted (flexible) overhead at units produced
Controllable variance
Unfavorable
Transcribed Image Text:Shaw Incorporated began this period with a budget for 1,070 units of predicted production. The budgeted overhead at this predicted
activity follows. At period-end, total actual overhead was $99,700, and actual units produced were 970. The company applies
overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH.
Variable overhead
$ 53,500
Fixed overhead
43,500
Total overhead
$ 97,000
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 variance by selecting favorable, unfavorable, or no variance.)
Volume Variance
Budgeted (flexible) overhead at units produced
Standard overhead applied
87,300
Volume variance
Unfavorable
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