Muscat Factory applies, manufacturing overhead based on machine hours. Information concerning manufacturing overhead and labor for the year follows: Actual manufacturing OMR overhead 600,000 costs Estimated 500,000 manufacturing overhead Actual machine hours 4,000 used Estimated machine 250,000 hours Estimated labor hours 5,000 Actual labor hours 4,300 The amount of under or overapplied overhead is:
Muscat Factory applies, manufacturing overhead based on machine hours. Information concerning manufacturing overhead and labor for the year follows: Actual manufacturing OMR overhead 600,000 costs Estimated 500,000 manufacturing overhead Actual machine hours 4,000 used Estimated machine 250,000 hours Estimated labor hours 5,000 Actual labor hours 4,300 The amount of under or overapplied overhead is:
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 10PB: The actual overhead for a company is $73,175. Overhead was based on 4,500 machine hours and was...
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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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