Use the following information to answer the question. Estimated manufacturing overhead $180,000 Actual manufacturing overhead $240,000 Estimated direct labour hours 15,000 Actual direct labour hours worked 16,000 The predetermined overhead rate for applying manufacturing overhead would be:
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 to answer the question.
|
|
Estimated manufacturing |
$180,000 |
|
|
Actual manufacturing overhead |
$240,000 |
|
|
Estimated direct labour hours |
15,000 |
|
|
Actual direct labour hours worked |
16,000 |
The predetermined overhead rate for applying manufacturing overhead would be:
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