Assume the following five facts: • budgeted fixed manufacturing overhead for the coming period of $308,750 • budgeted variable manufacturing overhead of $4.00 per direct labor hour, • actual direct labor hours worked of 64,000 hours, and • budgeted direct labor-hours to be worked in the coming period of 65,000 hours. The company allocates MOH based on direct-labor hours. The predetermined plantwide overhead rate for the period is closest to: A. $8.50 per dlh B. $8.82 per dlh C. $$8.75 per dlh D. $8.63 per dlh
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Assume the following five facts:
• budgeted fixed manufacturing
• budgeted variable manufacturing overhead of $4.00 per direct labor hour,
• actual direct labor hours worked of 64,000 hours, and
• budgeted direct labor-hours to be worked in the coming period of 65,000 hours.
The company allocates MOH based on direct-labor hours. The predetermined plantwide overhead rate for the period is closest to:
A. $8.50 per dlh
B. $8.82 per dlh
C. $$8.75 per dlh
D. $8.63 per dlh
Trending now
This is a popular solution!
Step by step
Solved in 2 steps