Nautical Corporation manufactures custom-made wood wall units. The following data pertain to Job X4A: Direct materials placed into production $9,000 Direct labor hours worked 300 hours Direct labor rate per hour $15 Machine hours worked 100 hours Factory overhead rate is $22.50 per machine hour. Job X4A consists of 500 units. One-half of Job X4A was sold for $10,000. What is the total amount of costs assigned to Job X4A? a. $13,500 b. $20,250 c. $15,750 d. $9,000
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.
Nautical Corporation manufactures custom-made wood wall units. The following data pertain to Job X4A:
Direct materials placed into production
$9,000
Direct labor hours worked
300 hours
Direct labor rate per hour
$15
Machine hours worked
100 hours
Factory
One-half of Job X4A was sold for $10,000. What is the total amount of costs assigned to Job X4A?
a. $13,500
b. $20,250
c. $15,750
d. $9,000
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