Estimated manufacturing overhead cost at the beginning of the year: $100,000 Estimated direct labor hours at the beginning of the year: 10,000 Actual manufacturing overhead cost incurred during the year: $118,000 Actual direct labor hours worked during the year: 11,000 Based on the above information, the cost record of the company will show: Select one: a. the overapplied overhead of $8,000 b. they are all wrong c. the overapplied overhead of $18,000 d. the underapplied overhead of $18,000
Estimated manufacturing overhead cost at the beginning of the year: $100,000 Estimated direct labor hours at the beginning of the year: 10,000 Actual manufacturing overhead cost incurred during the year: $118,000 Actual direct labor hours worked during the year: 11,000 Based on the above information, the cost record of the company will show: Select one: a. the overapplied overhead of $8,000 b. they are all wrong c. the overapplied overhead of $18,000 d. the underapplied overhead of $18,000
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 8PA: Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate...
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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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![Estimated manufacturing overhead cost at the
beginning of the year: $100,000
Estimated direct labor hours at the beginning of the
year: 10,000
Actual manufacturing overhead cost incurred during
the year: $118,000
Actual direct labor hours worked during the year:
11,000
Based on the above information, the cost record of
the company will show:
Select one:
a.
the overapplied overhead of $8,000
b. they are all wrong
c. the overapplied overhead of $18,000
d.
the underapplied overhead of $18,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9054acca-4d40-495c-8b99-cdf164616df5%2Fb7c5e979-440c-4110-9e2d-f5f918265d6e%2Fu27p4q5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Estimated manufacturing overhead cost at the
beginning of the year: $100,000
Estimated direct labor hours at the beginning of the
year: 10,000
Actual manufacturing overhead cost incurred during
the year: $118,000
Actual direct labor hours worked during the year:
11,000
Based on the above information, the cost record of
the company will show:
Select one:
a.
the overapplied overhead of $8,000
b. they are all wrong
c. the overapplied overhead of $18,000
d.
the underapplied overhead of $18,000
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