Using the following accounts and an overhead rate of 125% of direct labor cost, compute the amount of applied overheads. Goods in Process Inventory Particulars Amount Particulars Amount Beginning Balance Direct Material Direct Labor Overheads $ 25,700 $ 60,500 ? ? Finished Goods $ 173,000 Ending Balance 14,450 Finished Goods Inventory Beginning Balance Goods in Process Inventory 8,600 S 173,000 a. Overheads applied are $48,222 b. Overheads applied are $45,000 c. Overheads applied are $56,250 d. Overheads applied are $101,250
Using the following accounts and an overhead rate of 125% of direct labor cost, compute the amount of applied overheads. Goods in Process Inventory Particulars Amount Particulars Amount Beginning Balance Direct Material Direct Labor Overheads $ 25,700 $ 60,500 ? ? Finished Goods $ 173,000 Ending Balance 14,450 Finished Goods Inventory Beginning Balance Goods in Process Inventory 8,600 S 173,000 a. Overheads applied are $48,222 b. Overheads applied are $45,000 c. Overheads applied are $56,250 d. Overheads applied are $101,250
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 11EB: A company has the following information relating to its production costs: Compute the actual and...
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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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