Home Insert Page Layout Formulas Data Review View A в D G Static Budget 150 Actual The Rotations Corporation (June 2017) Results 2 Number of centrifuges assembled and sold 3 Hours of assembly time Variable manufacturing overhead cost per hour of assembly time 5 Variable manufacturing overhead costs 6 Fixed manufacturing overhead costs 220 396 4 $31.00 $12,693 $15,510 $14,100 Required 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead vari- ances using the columnar approach in Exhibit 8-4 (page 304). 2. Prepare journal entries for Rotations' June 2017 variable and fixed manufacturing overhead costs and variances; write off these variances to Cost of Goods Sold for the quarter ending June 30, 2017. 3. How does the planning and control of variable manufacturing overhead costs differ from the planning and control of fixed manufacturing overhead costs?
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.
Manufacturing overhead,
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