Direct labor hours are estimated as 1,800 in Quarter 1; 1,900 in Quarter 2; 1,700 in Quarter 3; and 2,100 in Quarter 4. Indirect material per hour $1.00 Supervisory salaries $18,000 Indirect labor per hour 1.20 Maintenance Salaries 5,000 Maintenance per hour 0.20 Property taxes and insurance 6,000 Utilities per hour 0.50 Depreciation 3,500 Prepare a manufacturing overhead budget using the above overhead information. blankManufacturing Overhead BudgetFor the Year Ending Dec. 31, 2020
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.
Direct labor hours are estimated as 1,800 in Quarter 1; 1,900 in Quarter 2; 1,700 in Quarter 3; and 2,100 in Quarter 4.
| Indirect material per hour | $1.00 | Supervisory salaries | $18,000 | |
| Indirect labor per hour | 1.20 | Maintenance Salaries | 5,000 | |
| Maintenance per hour | 0.20 | Property taxes and insurance | 6,000 | |
| Utilities per hour | 0.50 | 3,500 |
Prepare a manufacturing overhead budget using the above overhead information.
blankManufacturing Overhead BudgetFor the Year Ending Dec. 31, 2020
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Total | |
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| Total Variable |
$fill in the blank 25 | $fill in the blank 26 | $fill in the blank 27 | $fill in the blank 28 | $fill in the blank 29 |
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| Total Fixed Manufacturing Costs | $fill in the blank 54 | $fill in the blank 55 | $fill in the blank 56 | $fill in the blank 57 | $fill in the blank 58 |
| Total Manufacturing Overhead | $fill in the blank 59 | $fill in the blank 60 | $fill in the blank 61 | $fill in the blank 62 | $fill in the blank 63 |
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