the predetermined overhead rate with machine usage as the basis
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.
A manufacturing company's
Job 711 required Php 1,500 of direct materials60 hours of labor at Php 15 per hour, and 5 hours of machine time
Job 727 required Php 2,500 of direct materials, 45 hours of labor at Php 15 per hourand 35 hours of machine time.
Determine the predetermined overhead rate with machine usage as the basis
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