Kobe, Inc. had the following information relating to 2020. Budgeted factory overhead ₱ 74,800 Actual factory overhead ₱ 78,300 Applied factory overhead ₱ 76,500 Estimated labor hours 44,000 If Kobe decides to use the actual results from 2020 to determine the 2021 overhead rate, what will the 2021 overhead rate be? Show solution Group of answer choices ₱1.779 ₱1.740 ₱1.650 ₱1.738
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.
Kobe, Inc. had the following information relating to 2020.
Budgeted factory |
₱ 74,800 |
Actual factory overhead |
₱ 78,300 |
Applied factory overhead |
₱ 76,500 |
Estimated labor hours |
44,000 |
If Kobe decides to use the actual results from 2020 to determine the 2021 overhead rate, what will the 2021 overhead rate be? Show solution
Group of answer choices
₱1.779
₱1.740
₱1.650
₱1.738
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