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 52,000 $ 286,000 52,000 $ 338,000 Actual Results 47,200 $ 331,400 Exercise 21-18 (Algo) Volume and controllable variances LO P4 1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. 2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.

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 52,000 $ 286,000 52,000 $ 338,000 Actual Results 47,200 $ 331,400 Exercise 21-18 (Algo) Volume and controllable variances LO P4 1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. 2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.

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Description: Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and itsstandard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period.Production (in units)Ove

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 15E: Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing...

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