ANO Corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. The company based it predetermined overhead rate for the current year on the following data: Total estimated direct labor-hours 50,000 $285,000 Total estimated fixed manufacturing overhead cost Estimated variable manufacturing overhead 3.80 per direct labor-hour $ Recently, Job P123 was completed with the following characteristics: Total actual direct labor-hours 20 $ 710 $ 500 Direct materials Direct labor cost The predetermined overhead rate is closest to:
ANO Corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. The company based it predetermined overhead rate for the current year on the following data: Total estimated direct labor-hours 50,000 $285,000 Total estimated fixed manufacturing overhead cost Estimated variable manufacturing overhead 3.80 per direct labor-hour $ Recently, Job P123 was completed with the following characteristics: Total actual direct labor-hours 20 $ 710 $ 500 Direct materials Direct labor cost The predetermined overhead rate is closest to:
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 10E: Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair...
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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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