Delta corp. has provides the data of manufacturing overhead: Estimated manufacturing overhead for the year= $ 30,000 Estimated direct labor hours for the year= 2,000 Two jobs were worked on during the year: A1 and A2. The number of direct labor hours spent on Job A1 and Job A2 were 1,200 and 1,000, respectively. The actual manufacturing overhead was $37,000. What is the amount of the under or overapplied 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.
Delta corp. has provides the data of manufacturing
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Estimated manufacturing overhead for the year= |
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30,000 |
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Estimated direct labor hours for the year= |
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2,000 |
Two jobs were worked on during the year: A1 and A2. The number of direct labor hours spent on Job A1 and Job A2 were 1,200 and 1,000, respectively.
The actual manufacturing overhead was $37,000.
What is the amount of the under or overapplied manufacturing overhead?
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