What is the total amount of manufacturing overhead applied to production during the year? (Show complete calculations) What is the total manufacturing cost added to Work in Process during the year? What is the journal entry to record the transfer of completed jobs that is referred to above?
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.
- What is the total amount of manufacturing
overhead applied to production during the year? (Show complete calculations) - What is the total
manufacturing cost added to Work in Process during the year? - What is the
journal entry to record the transfer of completed jobs that is referred to above?
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- Total amount of manufacturing overhead applied to production during the year is =
=FORMULA= direct Labor hours actually worked * per direct Labor hour
= 42,000 * $ 16.50
= $ 693,000
2. Total manufacturing cost added to work in progress is
Formula = Raw Materials + Direct Labor + Manufacturing overhead
= $ 465,000 + $ 605,000 + $ 693,000
= $ 1763,000
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