Budgeted overheads $690,480 Budgeted machine hours 15,344 Actual machine hours 14,128 Actual overheads $679,550 Based on the data above, what is the machine hour absorption rate (to the nearest $)? A 44 per machine hour B 45 per machine hour C 48 per machine hour D 49 per machine hour
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.
Budgeted
Budgeted machine hours 15,344
Actual machine hours 14,128
Actual overheads $679,550
Based on the data above, what is the machine hour absorption rate (to the nearest $)?
A 44 per machine hour
B 45 per machine hour
C 48 per machine hour
D 49 per machine hour
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
