per unit 101 Direct materials (30 pounds @ $5.50 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $6 per hour) Fixed overhead (7 hours @ $12 per hour) Standard cost per unit $ 165.00 98.00 Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead During the current quart the con 42.00 84.00 $ 389.00 Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 62,000 units per quarter. The following additional information is available. Operating Levels 80% 49,600 347, 200 70% 43,400 303, 800 $ 4,166,400 $ 1,822, 800 $ 4,166, 400 $ 2,083, 200 90% 55,800 390, 600 $ 4,166, 400 $ 2,343, 600 stod at 90% of capacity and produced FF 900 uniter notual direct Inbor
per unit 101 Direct materials (30 pounds @ $5.50 per pound) Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $6 per hour) Fixed overhead (7 hours @ $12 per hour) Standard cost per unit $ 165.00 98.00 Production (in units) Standard direct labor hours (7 DLH/unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead During the current quart the con 42.00 84.00 $ 389.00 Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 62,000 units per quarter. The following additional information is available. Operating Levels 80% 49,600 347, 200 70% 43,400 303, 800 $ 4,166,400 $ 1,822, 800 $ 4,166, 400 $ 2,083, 200 90% 55,800 390, 600 $ 4,166, 400 $ 2,343, 600 stod at 90% of capacity and produced FF 900 uniter notual direct Inbor
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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