Exercise 21-25 (Algo) Overhead controllable and volume variances; overhead variance report LO P4 For May, Mariana compan

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Exercise 21 25 Algo Overhead Controllable And Volume Variances Overhead Variance Report Lo P4 For May Mariana Compan 1 (76.92 KiB) Viewed 12 times

Exercise 21-25 (Algo) Overhead controllable and volume variances; overhead variance report LO P4 For May, Mariana company planned production of 22,400 units (80% of its production capacity of 28,000 units) and prepared the following overhead budget. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $3.79 per DLH. Overhead Budget Production (in units) Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Rent of building Depreciation-Machinery Supervisory salaries Total fixed overhead costs Total overhead Indirect materials Indirect labor Power 80% Operating Level Maintenance Rent of building Depreciation-Machinery Supervisory salaries Actual total overhead 22,400 $ 40,320 71,500 18,900 14,800 42,000 28,000 58,000 $ 273,520 $ 40,320 67,200 16,800 It actually operated at 90% capacity (25,200 units) in May and incurred the following actual overhead. Actual Overhead Costs 6,048 130, 368 42,000 28,000 54,320 124, 320 $ 254,688 1. Compute the overhead controllable variance and identify it as favorable or unfavorable. 2. Compute the overhead volume variance and identify it as favorable or unfavorable. 3. Prepare an overhead variance report at the actual activity level of 25,200 units.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead controllable variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Actual total overhead Budgeted (flexible) overhead Fixed overhead Variable overhead Controllable variance Controllable variance Answer is not complete. $ 139,860 130,368 $ 273,520 $ 270,228 3,292 Required 1 Unfavorable Required 2 >

Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) Volume Variance Standard overhead applied Volume variance < Required 1 Required 3 >

Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 25,200 units. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) Expected Actual Controllable Variance Variable overhead costs: Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs: Rent of building Depreciation Machinery Supervisory salaries Total fixed overhead costs Total overhead costs Volume Variance Budgeted (flexible) overhead Standard overhead applied Volume variance Total overhead variance MARIANA COMPANY Overhead Variance Report For Month Ended May 31 Flexible Budget Actual Results < Required 2 Variances Required 3 > Favorable/Unfavorable