Davis Corporation reported the following for the month of November: Total hourly wages of plant workers ₱080,000 Advertising 134,000 Sales Commission 40,000 Depreciation of machine used in production 28,000 Depreciation of administrative equipment 27,000 Indirect Labor 25,000 Administrative Salaries 95,000 Utilities, factory 11,000 Direct Materials 200,000 Freight Out 20,000 What is the total manufacturing overhead costs for November? Show solution
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.
Davis Corporation reported the following for the month of November:
|
Total hourly wages of plant workers |
₱080,000 |
|
Advertising |
134,000 |
|
Sales Commission |
40,000 |
|
|
28,000 |
|
Depreciation of administrative equipment |
27,000 |
|
Indirect Labor |
25,000 |
|
Administrative Salaries |
95,000 |
|
Utilities, factory |
11,000 |
|
Direct Materials |
200,000 |
|
Freight Out |
20,000 |
What is the total
Group of answer choices
₱64,000
₱46,000
₱53,000
₱84,000
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