Seaside Seafood allocates overhead based on machine hours. Selected data for the most recent year follow Estimated manufacturing overhead cost Actual manufacturing overhead cost Estimated machine hours Actual machine hours 20,900 23.500 The estimates were made as of the beginning of the year, while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to OA $10.39. OB. $11.68 OC. $11.42. OD. $10.16. $238,700 $244,200
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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