1. Calculate the predetermined plantwide overhead rate, using direct labor hours. 30 per hour Calculate the applied overhead for each product, using direct labor hours. Applied overhead Business Home 1,200,000 2. Calculate the overhead cost per unit for each product. If required, round your answers to the nearest cent. Overhead Cost Business Home 270,000 ✓ 15 per unit unit per 3. What if the business printer used 18,000 hours (to produce 18,000 units) instead of 9,000 hours (total expected hours remi profitability of this product line if all 18 000
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.
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