Use the following information to answer items #31-#34:Standard Company has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHS) as follows: Standard overhead costs per unit: Variable portion (2 DLH P3.00/DLH P6.0o0 Fixed portion (2 DLH @ P5.00/DLH 10.00 The following data pertain to operations in Aprit: Actual Output Actual direct labor cost Actual direct labor hours worked Variable overhead cost incurred Fixed overhead cost incurred 80.000 units P 644,000 165.000 DLHS P 518.000 P 860.000
Use the following information to answer items #31-#34:Standard Company has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHS) as follows: Standard overhead costs per unit: Variable portion (2 DLH P3.00/DLH P6.0o0 Fixed portion (2 DLH @ P5.00/DLH 10.00 The following data pertain to operations in Aprit: Actual Output Actual direct labor cost Actual direct labor hours worked Variable overhead cost incurred Fixed overhead cost incurred 80.000 units P 644,000 165.000 DLHS P 518.000 P 860.000
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...
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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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The variable overhead efficiency variance for April was
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