Anwer Manufacturing had the following information in its records at the end of the year: Predetermined overhead rate 140% of direct labor costs Estimated direct labor costs 87,500 Actual direct labor costs 84,000 Manufacturing Overhead 15,000 17,000 80,000 What was the balance in Manufacturing Overhead?
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.
Anwer Manufacturing had the following information in its records at the end of the year:
Predetermined
140% of direct labor costs
Estimated direct labor costs
87,500
Actual direct labor costs
84,000
Manufacturing Overhead
15,000
17,000
80,000
What was the balance in Manufacturing Overhead?
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