Wowza Corporation manufactures party supplies and uses a predetermined overhead. The CFO has estimated total manufacturing costs to be $108.500, and the activity driver labor hours, which are estimated to be 62,000 hours. The following beginning balances are below: Work in Process Finished Goods $ 19,800 $ 37,100 Prepare these journal entries: #1) Manufacturing overhead was applied using 68,000 direct labor hours. #2) Seventy-five percent of Work in Process was transferred to the Finished Goods department.
Wowza Corporation manufactures party supplies and uses a predetermined overhead. The CFO has estimated total manufacturing costs to be $108.500, and the activity driver labor hours, which are estimated to be 62,000 hours. The following beginning balances are below: Work in Process Finished Goods $ 19,800 $ 37,100 Prepare these journal entries: #1) Manufacturing overhead was applied using 68,000 direct labor hours. #2) Seventy-five percent of Work in Process was transferred to the Finished Goods department.
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...
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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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