If a company incurred $5,250 is actual overhead costs and allocated $5,575 to jobs, was the overhead over allocated or underallocated? By how much? Refer to previous question. Give journal entry to adjust the manufacturing overhead account for over allocated or underallocated overhead
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.
If a company incurred $5,250 is actual
Journal entries are prepared to record the financial and non financial transactions of the business during the accounting period.
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