Calculate the predetermined plantwide overhead rate. (Note: Round to the nearest cent.) ii) Calculate the overhead applied to production for the month of Jun. iii) Calculate the overhead variance for the month of Jun.
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) Refer to the information in Question 1 for data. Now, assume that Juju has decided to use a plantwide
Required:
i) Calculate the predetermined plantwide overhead rate. (Note: Round to the nearest cent.)
ii) Calculate the overhead applied to production for the month of Jun.
iii) Calculate the overhead variance for the month of Jun.
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