Cream Company is expected to utilize 3,000 machine hours with fixed manufacturing overhead budgeted at P1,410 and an estimated variable manufacturing overhead rate of P2.10 per hour. Actual production required 2,700 machine hours, with a total overhead of P7,800. What is the over or under applied manufacturing overhead? A P13,098 over applied B D P861 over applied P13,098 under applied P861 under applied
Cream Company is expected to utilize 3,000 machine hours with fixed manufacturing overhead budgeted at P1,410 and an estimated variable manufacturing overhead rate of P2.10 per hour. Actual production required 2,700 machine hours, with a total overhead of P7,800. What is the over or under applied manufacturing overhead? A P13,098 over applied B D P861 over applied P13,098 under applied P861 under applied
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 11EB: Fitzgerald Company manufactures sewing machines, and they produced 2,500 this past month. The...
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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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