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Question - Beacon Company manufactures various types of plastic and rubber coated tubing products for various industries. Standard cost accounting system is used. The following are available:
Actual total overhead $44,000
Budgeted fixed costs $12,600
Total overhead application rate per standard direct labor hour $2.50
Actual hours used 16,000
Standard hours allowed 17,000
Normal activity in hours 14,000
The company uses a two-way analysis of overhead variances.
Required - Find the controllable variance of Beacon Company?
Describe how that organization either does or does not apply the course concepts (regarding the book Cost Accounting) on a day to day basis.
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