If company had annual budgeted overheads of $2055156 and used Direct Labour Hours as the cost driver and budgeted to run the business at 21071. Calculate the POHR for this company as use for the following: If Total Actual Direct Labour Hours during the periodwas 20054 and the Actual Overhead was $2162039, calculate the over or under applied overhead. (Note if the OHD is overapplied, enter your answer as a NEGATIVE (with a '-' in front) and if it is UNDERAPPLIED, the just enter the amount below. Note - do NOT enter '$' signs etc., just enter the amount as a number with NO decimal places
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 company had annual budgeted
If Total Actual Direct Labour Hours during the periodwas 20054 and the Actual Overhead was $2162039, calculate the over or under applied overhead. (Note if the OHD is overapplied, enter your answer as a NEGATIVE (with a '-' in front) and if it is UNDERAPPLIED, the just enter the amount below.
Note - do NOT enter '$' signs etc., just enter the amount as a number with NO decimal places
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