The Work in Process inventory account of a manufacturing Corporation shows a balance of Rs.30,000 at the end of an accounting period. The job cost sheets of the two uncompleted jobs show charges of Rs. 9,000 and Rs. 5000 for materials, and charges of Rs. 6,000 and Rs. 4,000 for direct labor. From this information, it appears that the Corporation is using a predetermined overhead rate, as a percentage of direct labor costs: Calculate Predetermined over rate?
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 Work in Process inventory account of a manufacturing Corporation shows a balance of Rs.30,000 at the end of an accounting period. The
Calculate Predetermined over rate?
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