The LLO-24784 company uses a job-order costing system with direct labor hours as its allocation base. The company estimates its manufacturing overhead cost for the year to be $974,700. During the year, actual direct labor-hours were 36,360 hours, the actual manufacturing overhead cost was $930,000, and manufacturing overhead was overapplied by $51,720. How much was the LLO-24784 company's estimated direct labor-hours used in the calculation of its predetermined overhead rate? (Round your intermediate calculations to 2 decimal places.) Multiple Choice 32,529 direct labor-hours 36,360 direct labor-hours 36,100 direct labor-hours 34,444 direct labor-hours
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 LLO-24784 company uses a
Multiple Choice
32,529 direct labor-hours
36,360 direct labor-hours
36,100 direct labor-hours
34,444 direct labor-hours
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