9. The Silver Company uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the year, the company made the following estimates: Dept A Dept B S60,000 $40,000 Direct labor cost. Manufacturing overhead. Direct labor-hours.. $90,000 $45,000 6,000 9,000 2,000 15,000 Machine-hours . What predetermined overhead rates would be used in Dept A and Dept B, respectively? 67% and $3.00 150% and $5.00 150% and $3.00 67% and $5.00
9. The Silver Company uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the year, the company made the following estimates: Dept A Dept B S60,000 $40,000 Direct labor cost. Manufacturing overhead. Direct labor-hours.. $90,000 $45,000 6,000 9,000 2,000 15,000 Machine-hours . What predetermined overhead rates would be used in Dept A and Dept B, respectively? 67% and $3.00 150% and $5.00 150% and $3.00 67% and $5.00
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PB: Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined...
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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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