Use the following information from BSJ Industries to determine the predetermined overhead rate based on direct labor costs. (Round your final answer to 2 decimal places.) Direct labor hours 50,000 Average hourly pay rate $ 27.00 Manufacturing overhead $ 3,105,000 Predetermined overhead rate $ for every dollar of labor cost
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.
Use the following information from BSJ Industries to determine the predetermined
| Direct labor hours | 50,000 | |
| Average hourly pay rate | $ | 27.00 |
| Manufacturing overhead | $ | 3,105,000 |
|
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