Carver Test Systems manufactures automated testing equipment. The company uses a job-order costing system and applies overhead on the basis of machine-hours. At the beginning of the year, estimated manufacturing overhead was P1,960,000 and the estimated machine-hours was 98,000. Data regarding several jobs at Carver are presented below. Beginning Direct Direct Machine Job Number Balance Materials Labor Hours XJ-107 ................... P118,600 P4,000 P8,400 150 ST-211 ................... P121,450 P2,500 P12,160 300 XD-108.................. P21,800 P86,400 P36,650 3,100 SL-205 ................... P34,350 P71,800 P32,175 2,700 RX-115 .................. P0 P18,990 P21,845 1,400 By the end of the first month (January), all jobs but RX-115 were completed, and all completed jobs had been delivered to customers except for SL-205. How much is the Cost of Goods Sold per job?
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.
Carver Test Systems manufactures automated testing equipment. The company uses a
Beginning Direct Direct Machine
Job Number Balance Materials Labor Hours
XJ-107 ................... P118,600 P4,000 P8,400 150
ST-211 ................... P121,450 P2,500 P12,160 300
XD-108.................. P21,800 P86,400 P36,650 3,100
SL-205 ................... P34,350 P71,800 P32,175 2,700
RX-115 .................. P0 P18,990 P21,845 1,400
By the end of the first month (January), all jobs but RX-115 were completed, and all completed jobs had been delivered to customers except for SL-205.
How much is the Cost of Goods Sold per job?
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