Polar Corp during March 2019, recorded P42,400 of costs related to factory overhead. overhead application rate is based on direct labor hours. The present formula for overhead application estimated that P42,700 would be incurred, and 4,500 direct labor hours would be worked. During March, 6,250 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied.
Polar Corp during March 2019, recorded P42,400 of costs related to factory overhead. overhead application rate is based on direct labor hours. The present formula for overhead application estimated that P42,700 would be incurred, and 4,500 direct labor hours would be worked. During March, 6,250 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 10PA: The actual overhead for a company is $74,539. Overhead was based on 6,000 direct labor 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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