Pol Industries uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate based on direct labour-hours. The following data were extracted from the company's accounting records for Year 6 Estimated Actual Manufacturing overhead costs 50,000 54,000 Direct labour- hours 20,000 24,000Job #232 was completed during the year and the following costs had been incurred on that job:Direct materials 4000 direct labour 1500 ( at $ 5.00 per direct labour hour) Suppose Job #232 contained 100 units. What unit cost would appear on the job cost sheet for job #232? Show ALL calculations
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.
Pol Industries uses a job order cost system and applies
Estimated Actual
Manufacturing overhead costs 50,000 54,000
Direct labour- hours 20,000 24,000
Job #232 was completed during the year and the following costs had been incurred on that job:
Direct materials 4000
direct labour 1500 ( at $ 5.00 per direct labour hour)
Suppose Job #232 contained 100 units. What unit cost would appear on the
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