Garand Company had a predetermined overhead rate of $6.00 per direct labor hour. Budgeted overhead was $720,000 and actual overhead incurred was $775,000. Actual direct labor hours worked were 125,000 hours. What was the amount of underapplied or overapplied overhead? Question 7 options: a) $20,000 underapplied b) $25,000 overapplied c) $25,000 underapplied d) $20,000 overappllied
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.
Garand Company had a predetermined
Question 7 options:
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