CORP incurred the following cost to produce product X which consisted of 1,000 units in January 2020: Direct materials: Requisition number 101: 400 yards of fabric at P 8 per yard and requisition number 102: 500 cubic feet of stuffing at 3 per cubic foot. Direct labor incurred are as follows: 500 hours was incurred (regular working hours for January is 110 hours per week with regular rate of 24 per hour. Overtime rate premium is 20%. Overtime hours are the result of inefficiency of the company’s machineries). Manufacturing overhead is applied based on direct labor hours at 20 per hour. At the end of January, 300 units of product X were still unsold. What is the cost of goods sold? Answer it quickly, I need it in 20 minutes
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.
CORP incurred the following cost to produce product X which consisted of 1,000 units in January 2020: Direct materials: Requisition number 101: 400 yards of fabric at P 8 per yard and requisition number 102: 500 cubic feet of stuffing at 3 per cubic foot. Direct labor incurred are as follows: 500 hours was incurred (regular working hours for January is 110 hours per week with regular rate of 24 per hour. Overtime rate premium is 20%. Overtime hours are the result of inefficiency of the company’s machineries). Manufacturing
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