Please see the following data for the ACME company; Estimated overhead costs for the year Estimated direct labor hours for the year Actual overhead for March Actual direct labor hours for March Account $150,000 Work in Process Inventory 10,000 a. Calculate the predetermined overhead rate based on direct labor hours. Overhead $12,000 b. Complete the journal entry that applies overhead in March. 900 Debit Credit c. By what amount is consulting overhead over or underapplied in March?
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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