Stipe Miocic Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $517,500, variable manufacturing overhead of $2.70 per machine-hour, and 75,000 machine-hours. The company has provided the following data concerning Job 2XHWCHAMP which was recently completed: Number of units in the job 20 Total machine-hours 80 Direct materials $ 910 Direct labor cost $1,820 The unit product cost for Job 2XHWCHAMP is closest to: (Round your intermediate calculations to 2 decimal places.)
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.
Stipe Miocic Corporation uses a job-order costing system with a single plantwide predetermined
| Number of units in the job | 20 |
|---|---|
| Total machine-hours | 80 |
| Direct materials | $ 910 |
| Direct labor cost | $1,820 |
The unit product
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