Manufacturing overhead: Estimated for the year $200,000 Actual cost incurred 192,000 Overhead cost is applied to production on a basis of direct labor hours. What is the predetermined overhead rate (round if necessary)? Group of answer choices $4.44
Manufacturing overhead: Estimated for the year $200,000 Actual cost incurred 192,000 Overhead cost is applied to production on a basis of direct labor hours. What is the predetermined overhead rate (round if necessary)? Group of answer choices $4.44
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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Question
The following information applies to Your Company for the current year:
Direct labor-hours:
Estimated for the year. 48,000
Actual hours worked. 45,000
Machine hours
Estimated for the year. 39,000
Actual hours worked. 36,000
Manufacturingoverhead :
Estimated for the year $200,000
Actual cost incurred 192,000
Overhead cost is applied to production on a basis of direct labor hours. What is the predetermined overhead rate (round if necessary)?
Direct labor-hours:
Estimated for the year. 48,000
Actual hours worked. 45,000
Machine hours
Estimated for the year. 39,000
Actual hours worked. 36,000
Manufacturing
Estimated for the year $200,000
Actual cost incurred 192,000
Overhead cost is applied to production on a basis of direct labor hours. What is the predetermined overhead rate (round if necessary)?
Group of answer choices
$4.44
$4.27
$4.17
$4.00
$5.13
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