The work in process account in the general ledger of Multan Manufacturing Company appears as follows: Work in Process Account Material Payroll Applied FOH Rs. 15,000 10,000 5,000 Job Completed Rs. 24,000 There was only one job in process. The material charged to this job amounted to Rs. 3,000. The FOH is applied to production on the basis of direct labor cost Calculate amount of FOH to job completed
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 work in process account in the general ledger of Multan Manufacturing Company appears as follows:
|
Work in Process Account |
|||
|
Material Payroll Applied FOH |
Rs. 15,000 10,000 5,000 |
Job Completed |
Rs. 24,000 |
There was only one job in process. The material charged to this job amounted to Rs. 3,000.
The FOH is applied to production on the basis of direct labor cost
Calculate amount of FOH to job completed
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
