arris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginn ear, it estimated that 29,000 direct labor-hours would be required for the period's estimated level of production. The compar stimated $532,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2 irect labor-hour. Harris's actual manufacturing overhead cost for the year was $650,322 and its actual total direct labor was ours. Required: Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead ratna per DLH
arris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginn ear, it estimated that 29,000 direct labor-hours would be required for the period's estimated level of production. The compar stimated $532,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2 irect labor-hour. Harris's actual manufacturing overhead cost for the year was $650,322 and its actual total direct labor was ours. Required: Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead ratna per DLH
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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