ed and paid Website expenses, $2,650. b. Incurred manufacturing wages of $9,800, of which 80% was for direct labor and 20% of which was for indirect labor. c. Purchased raw m
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.
Journalize the following transactions for Becah's Bakery:
Becah's Bakery
| a. Incurred and paid Website expenses, $2,650. |
|---|
| b. Incurred manufacturing wages of $9,800, of which 80% was for direct labor and 20% of which was for indirect labor. |
| c. Purchased raw materials on account, $18,930. |
| d. Used in production: direct materials, $7,980; indirect materials $3,600. |
| e. Recorded manufacturing |
| f. Allocated manufacturing overhead to jobs, 230% of direct labor costs. |
| g. Completed production on |
| h. Sold inventory on account, $25,110; cost of goods sold, $12,240. |
| i. Adjusted for overallocated or underallocated overhead. |
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