Adorable Company has a job order cost system. For the month of April, the following debits (credits) appeared in the Work in Process account: Beginning Balance Direct Materials Direct Labor Factory Overhead Finished Goods 24,000 80,000 60,000 60,000 (200,000) Adorable applies overhead at a predetermined rate based on direct labor cost. Job No. 100 the only job still in process at the end of April, has been charged with manufacturing overhead of P4,500.
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.
How much is the amount of direct materials charged to Job No. 100?
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