The following data pertain to the current year: Budgeted manufacturing overhead: OMR 390,000 Actual manufacturing overhead: OMR 440,000 Budgeted machine hours: 30,000 hrs. Actual machine hours: 33,000 hrs. Overhead applied to production totaled: Select one: a. 484,000 b. 455,000 c. 429,000 d. 355,000
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.
The following data pertain to the current year:
Budgeted manufacturing
Actual manufacturing overhead: OMR 440,000
Budgeted machine hours: 30,000 hrs.
Actual machine hours: 33,000 hrs.
Overhead applied to production totaled:
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