Mountain Peaks applies overhead on the basis of machine hours and reports the following information: Budget Actual Overhead $300,000 $292,000 Machine hours 50,000 47,000 Direct materials $210,000 Direct labor $350,000 A. What is the predetermined overhead rate? $fill in the blank 3535e800bfde05e_1 per machine hour B. How much overhead was applied during the year? $fill in the blank 3535e800bfde05e_2 machine hours C. Was overhead over- or underapplied, and by what amount? $fill in the blank 3535e800bfde05e_4 D. What is the journal entry to dispose of the over- or underapplied overhead? If an amount box does not require an entry, leave it blank. fill in the blank 3f6f32f8efd7f8a_2 fill in the blank 3f6f32f8efd7f8a_3 fill in the blank 3f6f32f8efd7f8a_5 fill in the blank 3f6f32f8efd7f8a_6
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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Mountain Peaks applies
overhead on the basis of machine hours and reports the following information:Budget Actual Overhead $300,000 $292,000 Machine hours 50,000 47,000 Direct materials $210,000 Direct labor $350,000 A. What is the predetermined overhead rate?
$fill in the blank 3535e800bfde05e_1 per machine hour
B. How much overhead was applied during the year?
$fill in the blank 3535e800bfde05e_2 machine hours
C. Was overhead over- or underapplied, and by what amount?
$fill in the blank 3535e800bfde05e_4
D. What is the
journal entry to dispose of the over- or underapplied overhead? If an amount box does not require an entry, leave it blank.fill in the blank 3f6f32f8efd7f8a_2 fill in the blank 3f6f32f8efd7f8a_3 fill in the blank 3f6f32f8efd7f8a_5 fill in the blank 3f6f32f8efd7f8a_6
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