Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost. Beginning of period $ 45,000 9,600 68,000 End of Period $ 45,000 19,000 33,500 Inventories Raw materials Work in process Finished goods Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs $ 178,000 250,000 9,000 57,500 115,500
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.
![Use the following information to answer questions. (Algo)
[The following information applies to the questions displayed below.]
The following information is available for ADT Company, which produces special-order security products and uses a job
order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost.
End of
Period
Beginning
of period
$ 45,000
9,600
68,000
Inventories
Raw materials
Work in process
Finished goods
$ 45,000
19,000
33,500
Cost incurred for the period
$ 178,000
250,000
Raw materials purchases
Factory payroll
Factory overhead (actual)
Indirect materials used
Indirect labor used
Other overhead costs
9,000
57,500
115,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5dc9d2dd-35ab-4c84-a611-40f810db3ab6%2F5e014681-970d-4085-a044-47986dc1fc13%2Fhedxaep_processed.png&w=3840&q=75)
There are two accounting system:
(1) Integrated Accounting: It is a system of accounting whereby cost and financial accounts are kept in same set of books.
(2) Non - Integrated Accounting : It is a system in which two different sets of accounting records are maintained for financial accounting & cost accounting purpose.
While recording Journal entry, we have to see that which system of accounting is followed by company.
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