em #6 of 16 Tuscany Company estimated the following costs at the beginning of a particular year: Overhead Direct labor cost $3,680,000 $920,000 Tuscany uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost equals total direct labor hours worked multiplied by the wage rate.) The direct labor cost was $47,000 for the month of January. Determine the overhead applied for the month of January. Oa. $188,000 b. $105,750 Oc. $141,000 d. $80,000
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.
em #6 of 16
Tuscany Company estimated the following costs at the beginning of a particular year:
Direct labor cost
$3,680,000
$920,000
Tuscany uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost equals total direct labor hours worked multiplied by the wage rate.) The direct
labor cost was $47,000 for the month of January. Determine the overhead applied for the month of January.
Oa. $188,000
b. $105,750
Oc. $141,000
d. $80,000
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