A company uses a standard cost system using direct labor-hours (DLHS) to apply monufacturing óv ericad. Cost diti relued fer fed manufacturing overhead (FMOH) for a recent period was: Actual FMOH cost incurred $ 840,000 FMOH budget variance %24 42,000 favorable Activity data for the month was: Denominator activity level in DLHS Standard hours allowed for actual output Actual number of DLHS incurred 21,000 19,600 22,050 DLHS DLHS DLHS The amount of total fixed manufacturing overhead cost applied to production last month was closest to A. B. C. D. E None of the above is correct. $ 744,800 $ 823,200 $784,000 S 837,900
A company uses a standard cost system using direct labor-hours (DLHS) to apply monufacturing óv ericad. Cost diti relued fer fed manufacturing overhead (FMOH) for a recent period was: Actual FMOH cost incurred $ 840,000 FMOH budget variance %24 42,000 favorable Activity data for the month was: Denominator activity level in DLHS Standard hours allowed for actual output Actual number of DLHS incurred 21,000 19,600 22,050 DLHS DLHS DLHS The amount of total fixed manufacturing overhead cost applied to production last month was closest to A. B. C. D. E None of the above is correct. $ 744,800 $ 823,200 $784,000 S 837,900
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 12E
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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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