Industrial company Y For the financial year 2000 it had budgeted industrial overheads of 846000. S uses an allocation factor based on direct labor hours. The budgeted hours were 47,000. The actual industrial overheads were 938,000 and the actual direct labour hours were 50,000. On the basis of the above, S shows: Α. In favour of the allocation of Gve 38000 Β. Under allocation GGE 38000 Γ. Over and above GGE 92000 Δ. Attributable to GGE 92000
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.
13. Industrial company Y For the financial year 2000 it had budgeted industrial
Α. In favour of the allocation of Gve 38000
Β. Under allocation GGE 38000
Γ. Over and above GGE 92000
Δ. Attributable to GGE 92000
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