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.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7de085f-c967-459d-bee1-406b072da8ba%2F2d342b2d-d1ca-4a0d-ba42-8138fd76bd31%2F5vwae2_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)