3. A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was $805,100, and there were 99,900 direct labor hours. PLEASE NOTE: For the first question, the predetermined overhead rate will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $12,345.67). The rates will include their proper label according to the textbook examples (no abbreviations). For the second question, the dollar amount is rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the third question, please use "overapplied" or "underapplied" (no quotes) for the first part and the dollar amount is rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345) for the second part. What is the predetermined overhead rate? How much was applied during the year? Overhead was ? by ?
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.
3. A company estimated 100,000 direct labor hours and $800,000 in
PLEASE NOTE:
For the first question, the predetermined overhead rate will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $12,345.67). The rates will include their proper label according to the textbook examples (no abbreviations).
For the second question, the dollar amount is rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).
For the third question, please use "overapplied" or "underapplied" (no quotes) for the first part and the dollar amount is rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345) for the second part.
- What is the predetermined overhead rate?
- How much was applied during the year?
- Overhead was ? by ?
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