Waterway Industries applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 250, the only job still in process at the end of August, has been charged with manufacturing overhead of $12600. What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $55000? $ 14000. $28400. $55000. $ 12600.
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.
Waterway Industries applies
|
|
$ 14000. |
|
|
$28400. |
|
|
$55000. |
|
|
$ 12600. |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
