A company uses a standard costing system with direct labor hours (DLHS) as the allocation base for fixed manufacturing overhead FMOH) and a standard of 3 DLHS per unit. For the most recent period, the company reported the following data: FPOHR Actual DLHS Actual FMOH FMOH Budget Varlance FMOH Volume Variance $2.5 per DLH 10,500 hours $36,000 $3,000 Unfavorable $1.500 Favorable Q. What was the actual number of units produced for the period? ANS. units
A company uses a standard costing system with direct labor hours (DLHS) as the allocation base for fixed manufacturing overhead FMOH) and a standard of 3 DLHS per unit. For the most recent period, the company reported the following data: FPOHR Actual DLHS Actual FMOH FMOH Budget Varlance FMOH Volume Variance $2.5 per DLH 10,500 hours $36,000 $3,000 Unfavorable $1.500 Favorable Q. What was the actual number of units produced for the period? ANS. units
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...
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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.
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