Watson Roofing manufactures extension ladders. Information for the year related to the company appears below. The company allocates overhead based on machine hours. Based on the information below, how much overhead was applied to products during the year? Total manufacturing overhead cost Machine hours O $480,000 O $720,000 O $550,000 O $490,000 Estimated Actual $500,000 $480,000 100,000 110,000

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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.