ns Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The mpany based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $162,000, variable ufacturing overhead of $2.80 per direct labor-hour, and 60,000 direct labor-hours. Recently, Job K818 was completed with the following racteristics: umber of units in the job tal direct labor-hours irect materials. irect labor cost 10 50 $ 920 $ 1,400 e total job cost for Job K818 is closest to: te: Round your intermediate calculations to 2 decimal places. Multiple Choice
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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