The annual budget for Vasconcellos Manufactures for 2023 is the following: Direct Materials......$30,000 • Direct Labor ($8 per hour; yeah, I'm cheap!)........120,000 Sales Commissions......28,000 • Factory Supervision...16,000 Indirect Labor....27,000 Factory Depreciation... 25,000 Factory Taxes...7,000 Factory Insurance...6,000 • Factory Utilities....9,000 . . . . . . A. Compute the plant-wide predetermined manufacturing overhead rate for '23 using direct labor hours as the activity measure. SHOW YOUR WORK B. Determine the amount of manufacturing overhead that would be applied to jobs during March '23 when 1,100 direct labor hours were incurred. SHOW YOUR WORK

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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.