The following manufacturing costa data are available for Division 911: Work in proceas January 1, 2018 Factory Overhead PO0,000 Job No. Materiala Labor Tutal P145.000 156 Pa5,000 P44.000 Costa for 2018 Incurred by Jobe Tatal PI6,000 168.000 42.000 10,000 Materials Labor Other 156 167 158 159 P2,000 62,000 24,000 8000 P- P14,000 106,000 18,000 2.000 Not Ineurred by Jobe Indirect materials and ddne Employee benedita Depreciation Supervision 30,000 30,000 106.000 46,000 24.000 40,000 Indirect labor 106,000 46,000 24,000 40,000 Factory overhead for 2018 Budgeted Manufacturing Overhead: Variable - Indirect materials and supplies Indirect labor Employee benefits Depreciation Supervision P 32,000 112,000 48,000 24,000 40,000 Fixed Total P256,000 Budgeted Direct Labor Costa P160,000 Manufacturing Overhead rate per direct labor cost (P256,000P160,000) 160% Compute the actual manufacturing overhead. Compute the applied manufacturing overhead. Compute the net overhead variance (indicate over- or underapplied manufacturing overhead

Q: The total absorbtion rate used to allocate manuafcturing overhead is calculated by?

A: The absorption rate is allocated using the different allocation bases Direct labors hours Direct…

Q: Describe fixed manufacturing overhead under absorption costing.

A: Absorption costing: Under this method, manufacturing cost such as direct material and labor is…

Q: How does the planning of fixed overhead costs differ from the planning of variable overhead costs?

A: Variable cost: The cost which fluctuates on the basis of the output level produced. The variable…

Q: There must be a correlation between the activity and changes in the amount of overhead.   True /…

A: Correlation:-It refers to the statistical relationship between two variables or activities.…

Q: How is the predetermined overhead allocation rate determined?

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

Q: Explain the treatment of over and under absorption of overheads in cost accounts?

A: Overheads: These are defined as the expenses incurred in relation to an ongoing business. These are…

Q: Which do you think is more important for controlling fixed overhead costs: the spending variance or…

A: (This is not a subjective matter of opinion but rather is based on accounting principles and theory…

Q: Define the terms under-allocated and over-allocated overhead. What factors contribute to each…

A: Expenses associated with manufacturing overhead: "Manufacturing overhead costs, also known as…

Q: Explain why standard costing is more suitable for controlling the cost of unit-level activities

A: Standard costing is a cost accounting method in which predetermined levels of sales, production,…

Q: manufacturing cost and non-manufacturing cost, provide an example of each type.

A: COST is a measurement in monetary terms of the amount of resources used for the purpose of…

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

A:

Q: Which accounts are adjusted for the under-allocated or over-allocated overhead in JIT costing?

A: Just-in-time manufacturing system:     Just-in-time (JIT) manufacturing system is an approach to…

Q: significant of variance analysis in cost management.

A: Variance analysis is a tool in cost management to compare and analyze variations in budgeted costs…

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: Explain the benefits of using a predetermined overhead rate instead of an actual overhead rate.

A:

Q: What is the overall variance in overhead?

A: Overhead refers to secondary expenditures spent during the manufacturing and distribution of…

Q: Is it possible to have under- or overapplied overhead costs in a process costing system? Explain.

A: Process Costing: Process costing is a method of cost accounting, which is used when the production…

Q: In a process costing system, the cost per equivalent unit must be computed before computing…

A: Note : Cost per equivalent units = Cost / Equivalent units

Q: Which types of overhead allocation methods result in the use of more than one overhead rate during…

A: The objective of the question is to identify the overhead allocation methods that result in the use…

Q: What is the standard variable overhead rate and standard fixed overhead rate?

A: The overhead rate is calculated by dividing total indirect costs (also known as overhead) for a…

Q: An activity-based overhead rate is computed as follows: actual overhead divided by estimated use of…

A: Activity-based costing (ABC) is a complex but accurate cost allocation method for a product or…

Q: What are the justifications for using practical capacity as the denominator volume when…

A: Fixed cost volume variance: The fixed cost volume variance is the difference between the budgeted…

Q: Explain direct labour efficiency variance.

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: Explain the difference between under-allocated overhead and over-allocated overhead. What causes…

A: Overhead is applied using estimated or budgeted overhead and a base. Actual overhead costs are…

Q: Calculate the total absorbtion rate used to apportion manufacturing overhead by?

A: The absorption rate is assigned according to the various allocation grounds. Hours of direct work…

Q: What adjustment is made for underapplied overhead on the schedule of CoGS? What adjustment is made…

A: Underapplied overhead is added to cost of goods sold thus increases the total cost of goods sold.

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.