Straightforward coverage of manufacturing overhead, standard-costing system. The Brazil division of an American telecommunications company uses standard costing for its machine-paced production of telephone equipment. Data regarding production during June are as follows: $537,470 $7 per standard machine-hour $146,101 $136,000 Variable manufacturing overhead costs incurred Variable manufacturing overhead cost rate Fixed manufacturing overhead costs incurred Fixed manufacturing overhead costs budgeted Denominator level in machine-hours 68,000 1.2 66,500 Standard machine-hour allowed per unit of output Units of output Actual machine-hours used 75,700 Ending work-in-process inventory

Q: Which of the following is the step in which materials, labor, and overhead are detailed?

A: Direct material is the cost of the raw materials or parts that go directly into the production of a…

Q: Overheads applied are calculated by: a.OAR times the estimated cost driver activity b. Budgeted…

A: Overhead is applied on the actual cost driver at the rate based on the estimated overhead and…

Q: How is the predetermined overhead allocation rate determined?

A: Predetermined overhead allocation rate: Predetermined overhead refers to the allocation rate that is…

Q: Under the 3 variance method for analyzing overhead, the difference between the actual factory…

A: Under the 3 variance method for analyzing overhead, the difference between the actual factory…

Q: Levine Inc., which produces a single product, has prepared the following standard cost sheet for one…

A: Total material variance :— It is the difference between standard direct material cost for actual…

Q: how do I make a cost of production report?

A:

Q: PROBLEM III At the beginning of the school year. Sheldon Allman decided to prepare a cash budget for…

A: Cash budget is one of the useful budget being prepared in business. It shows all expected cash…

Q: Differences between a job order cost system and a process cost system include all of the following…

A: Job Order Cost System and Process Cost System are two different costing methods used in managerial…

Q: Prepare the journal entries for material and labor using standard costing.

A: Journal entry is the entry which is recorded on the journal book of the company which is also known…

Q: Which of the following is a conversion cost?A. raw materialsB. direct laborC. sales commissionsD.…

A: Conversion costs seem to be the expenses of converting raw resources into finished goods. In cost…

Q: Computing and journalizing standard cost variances McKnight manufactures coffee mugs that it sells…

A: Direct material Cost variance = Actual quantity ( Actual cost - standard cost ) Direct labor cost…

Q: How is predetermined overhead rate established? How is it used to apply overhead?

A:

Q: The standards for direct materials are made up of which of the following components? a.variance…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Cost of each manufacturing process is ascertained under: a. Process costing b. Contract costing c.…

A: A business can produce by various method like in various processes or batches.

Q: Define Work-in-process inventory.

A: Definition:   Inventory refers to the raw materials, work-in-process, and the finished goods…

Q: Distinguish between the following: i. allocation and apportionment  ii. job and batch costing

A: The costing methods are used to determine the cost. The company is required to determine the cost to…

Q: List the direct labor variances, and briefly describe each.

A: Labor variance arises when the actual expenses associated with a labor activity varies from the…

Q: Discuss the standard costing and variance analysis of material and labour cost elements with an…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Distinguish between the product-costing and control purposes of standardcosts for factory…

A: Standard Costing: Standard costing is an accounting tool which is used to measure the variances in…

Q: **Question:** Which method is commonly used in accounting to compare actual costs with standard…

A: Activity based costing - It assigns overhead costs to products based on activities they require

Q: Compute predeterminedoverhead rates and explainwhy estimated overhead costs(r ather than actual…

A: Cost:   It is the economic value incurred by the business to manufacture a product or to render a…

Q: Explain the use of costing method in the preparation of production cost report.

A: Cost:   It is an economic value incurred by the business to produce a product or to render a…

Q: Question 4: Define the following:…

A: Variable cost refers to that cost which variate with the variations in the production or sales…

Q: Under the three-variance method for analyzing factory overhead, whi.ch of the following is used in…

A: A three way variance has  Efficiency, volume and spending variance. Generally variance refers to the…

Q: How do you calculate the predetermined overhead rate do you have an example

A: An allocation rate used to estimate the manufacturing costs is termed as predetermined overhead…

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.