Shire Computer's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $696,000 of overhead costs and $ 580,000 of direct labor cost for the year. During MarchShire began and completed Job 13-56 . 1. What is the predetermined overhead rate for the year? 2. Use the information on the following cost sheet to determine the total cost of the job.
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.
Shire Computer's predetermined
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