HAS-46082 Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocation base. The company pays its direct laborers $19.00 per hour. During the year, the company started and completed only two jobs-Job Teta, which used 62,700 direct labor-hours, and Job Gamma. The job cost sheets for these two jobs are shown below: Job Teta Direct materials Direct labor Manufacturing overhead applied Total job cost Job Gamma Direct materials Direct labor Manufacturing overhead applied Total job cost ? ? ? $1,980,000 $ 375,100 494,000 286,000 $ 1,155,100
HAS-46082 Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocation base. The company pays its direct laborers $19.00 per hour. During the year, the company started and completed only two jobs-Job Teta, which used 62,700 direct labor-hours, and Job Gamma. The job cost sheets for these two jobs are shown below: Job Teta Direct materials Direct labor Manufacturing overhead applied Total job cost Job Gamma Direct materials Direct labor Manufacturing overhead applied Total job cost ? ? ? $1,980,000 $ 375,100 494,000 286,000 $ 1,155,100
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 21E: Lorrimer Company has a job-order cost system. The following debits (credits) appeared in 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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