X applies overhead on the basis of direct labor hours (DLH). Datas are given: Budgeted overhead = 180,000, Actual DLH = 10,000, and Actual overhead = $200,000. The adjustment for applied overhead resulted in a $50,000 decrease in net income. Q: What's the direct labor hours used to calculate A2B's predetermined overhead rate (POHR). a. 8,000 direct labor hours b. 14,000 direct labor hours c. 12,000 direct labor hours d. 10,000 direct labor hours. e. None of the other answers are correct
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.
X applies
Datas are given: Budgeted overhead = 180,000, Actual DLH = 10,000, and Actual overhead = $200,000. The adjustment for applied overhead resulted in a $50,000 decrease in net income.
Q: What's the direct labor hours used to calculate A2B's predetermined overhead rate (POHR).
a. 8,000 direct labor hours
b. 14,000 direct labor hours
c. 12,000 direct labor hours
d. 10,000 direct labor hours.
e. None of the other answers are correct
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