The annual normal capacity for Saplot company is 36,000 machine hours, with fixed manufacturing overhead budgeted at P16,920 and an estimated variable manufacturing overhead rate of P2.10 per hour. During April, actual production required 2,700 machine hours, with a total overhead of P7,800. What is the over/underapplied FOH? P720 overapplied FOH P720 underapplied FOH P14,790 overapplied FOH P14,790 underapplied FOH
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.
The annual normal capacity for Saplot company is 36,000 machine hours, with fixed manufacturing
P720 overapplied FOH
P720 underapplied FOH
P14,790 overapplied FOH
P14,790 underapplied FOH
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