A work element takes 20 hours of labor of a technician. Currently, the technician makes $22.50 per hour. For this project, the overhead charges are 72% of the direct labor charges and 10% personal time was assumed for this work element. What is the grand total cost to complete this work element? (the total be the sum of the direct labor, overhead, and personal time cost)?
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 work element takes 20 hours of labor of a technician. Currently, the technician makes $22.50 per hour. For this project, the
What is the grand total cost to complete this work element? (the total be the sum of the direct labor, overhead, and personal time cost)?
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