ABC Co. produces 3 products with the following production and cost information: Model X Model Y Model Z Units produced 2,000 6,000 13,000 Direct Labor hours 4,000 2,000 4,000 Number of set ups Number of shipments Engineering change orders 100 150 250 200 225 275 15 10 Overhead costs include the following: Set up P45,000; Shipping P70,000 and Engineering P90,000. Using ABC method, the overhead cost per unit of Model X must be.

Q: Selling and administrative 10.00 If the company used the variable (direct) costing method, the…

A: Operating Income  = Sales - Variable Cost - Fixed Cost

Q: ABC Co. produces 3 products with the following production and cost information: Model X Model Y…

A: The question is based on the concept of Cost Accounting.

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A: Overhead means the cost indirectly incured for manufacturing the product.

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A: Function  Product A Product B Total overhead 1 2 hours x P10 per hour = P20 1 hour x…

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A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: overhead is allocated to Alpha

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A: Setup cost per unit = Cost per setup / No. of units per setup

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A: Direct  Material quantity variance = (Actual quantity used - Standard quantity allowed)*Standard…

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A: Activity Based Costing:— This is the Method of Assigning Overhead to Products based on Activity. In…

Q: Johnson Co. Ltd. make and sell two product Q and Z, each of which passes through the same automated…

A:

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A: Solution:

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A: Labor rate variance = (Actual hours*Actual rate) - (Actual hours*Standard rate)

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A: Formula: Variable Overhead Rate Variance=(Standard Rate-Actual Rate)×Actual Hours

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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.