he XYZ Company uses a predetermined overhead rate. XYZ made the following budget at the beginning of the year: Direct Labor Cost P12,000 Factory Overhead Rate 25,000 Direct Labor Hours 9,000 Machine Hours 1,500 During the month of January, the cost sheet for order number 100 indicates P20 of raw materials, P50 of direct labor, 10 hours of direct labor, 5 machine hours. Order number 100 consists of 49 units of product. XYZ applied overhead based on direct labor cost. What amount of overhead should be applied for order number 100?
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.
The XYZ Company uses a predetermined
| Direct Labor Cost | P12,000 |
| Factory Overhead Rate | 25,000 |
| Direct Labor Hours | 9,000 |
| Machine Hours | 1,500 |
During the month of January, the cost sheet for order number 100 indicates P20 of raw materials, P50 of direct labor, 10 hours of direct labor, 5 machine hours. Order number 100 consists of 49 units of product. XYZ applied overhead based on direct labor cost. What amount of overhead should be applied for order number 100?
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