Cameron Corporation manufactures custom-made purses. The following data pertain to Job XY5: Direct materials placed into production $4,000 Direct labor hours worked 50 hours Direct labor rate per hour $15 Machine hours worked 100 hours Factory overhead is applied using a plantwide rate based on direct labor hours. Factory overhead was budgeted at $80,000 for theyear, and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units. What is the total cost assigned to JobXY5? a. $5,150 b. $4,200 c. $4,950 d. $4,400
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.
Cameron Corporation manufactures custom-made purses. The following data pertain to Job XY5:
Direct materials placed into production
$4,000
Direct labor hours worked
50 hours
Direct labor rate per hour
$15
Machine hours worked
100 hours
Factory
a. $5,150
b. $4,200
c. $4,950
d. $4,400
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