Placker Corporation uses a job-order costing system with a single, plantwide, predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on a total fixed manufacturing overhead cost of $155,000, variable manufacturing overhead of $3.40 per machine-hour, and 50,000 machine-hours. Recently, Job A881 was completed with the following characteristics: Total machine-hours: 100 Direct materials: $645 Direct labor cost: $2,300 The total job cost for Job A881 is closest to Question 4 options: $1,295. $2,950. $3,595. $2,945.
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.
Placker Corporation uses a job-order costing system with a single, plantwide, predetermined
Question 4 options:
$1,295.
$2,950.
$3,595.
$2,945.
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