Nk limited has applied overhead cost for the just ended period by 6000. Nk limited overhead application rate is 8 per unit and it is based on the standard capacity of 5000 unit . Supposed the actual production output for the period was 4500 units . What’s NK Ltd actual fixed overhead cost incurred in the period. Show working
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.
Nk limited has applied
Nk limited overhead application rate is 8 per unit and it is based on the standard capacity of 5000 unit .
Supposed the actual production output for the period was 4500 units .
What’s NK Ltd actual fixed overhead cost incurred in the period. Show working
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