A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $351,232 and direct labor hours would be 43,904. Actual factory overhead costs incurred were $391,711, and actual direct labor hours were 51,004. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$16,321 overapplied b.$408,032 overapplied c.$16,321 underapplied d.$56,800 underapplied Aspen Technologies has the following budget data: Estimated direct labor hours 9,200 Estimated direct labor dollars $65,200 Estimated factory overhead costs $178,500 If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is a.$19.40 b.$29.10 c.$15.52 d.$23.28
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.
A manufacturing company applies factory
Aspen Technologies has the following budget data:
| Estimated direct labor hours | 9,200 |
| Estimated direct labor dollars | $65,200 |
| Estimated factory overhead costs | $178,500 |
If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is
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