Harootunian Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 80,000 Total fixed manufacturing overhead cost $ 312,000 Variable manufacturing overhead per machine-hour $ 2.10 Recently, Job T629 was completed with the following characteristics: Number of units in the job 50 Total machine-hours 200 The estimated total manufacturing overhead is closest to: $312,002 $480,000 $168,000 $312,000
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.
Harootunian Corporation uses a
Total machine-hours 80,000
Total fixed
Variable manufacturing overhead per machine-hour $ 2.10
Recently, Job T629 was completed with the following characteristics:
Number of units in the job 50
Total machine-hours 200
The estimated total manufacturing overhead is closest to:
$312,002
$480,000
$168,000
$312,000
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