orb overheads based on output levels. During the period the company over-absorbed overheads by ghc6000 based on 5000 budgeted units. The actual overhead cost for the period is ghc34000. The company estimates that the total of direct material and direct labour cot for producing a unit of the product is ghc50 and expects a margin of 20%. What is the selling price per unit?
orb overheads based on output levels. During the period the company over-absorbed overheads by ghc6000 based on 5000 budgeted units. The actual overhead cost for the period is ghc34000. The company estimates that the total of direct material and direct labour cot for producing a unit of the product is ghc50 and expects a margin of 20%. What is the selling price per unit?
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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A company absorb overheads based on output levels. During the period the company over-absorbed overheads by ghc6000 based on 5000 budgeted units. The actual overhead cost for the period is ghc34000. The company estimates that the total of direct material and direct labour cot for producing a unit of the product is ghc50 and expects a margin of 20%. What is the selling price per unit?
A. Ghc71.5
B. Ghc72.5
C. Ghc73.5
D. Ghc74.5
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