If it has a setting labeled DTE then yes, that is distance to empty.
Compute the actual and budgeted manufacturing overhead rate
Using a predetermined rate makes itpossible to estimate total job costs sooner. Actual overhead for the period is notknown until the end of the period.
Difference between actual overhead and applied overhead is as follows: Difference = 33451 - 32000 = 1450 Difference of variance will be charged to income statement.
APPLIED Overhead is computed using the predetermined overhead rate and is the amount of costs applied (or estimated) to be allocated (needed) for specific jobs. ACTUAL Overhead is found after the manufacturing process is complete which gives the actual amount of used/consumed resources (or total costs) that it needed to complete the job. The two amounts can then be compared afterward which is known as Under- or Overapplied Manufacturing Overhead. When Manufacturing Overhead has a DEBIT balance, overhead is said to be UNDERAPPLIED, meaning that the overhead applied to work in process or to the certain job is LESS than the overhead incurred. On the contrary, when manufacturing overhead has a CREDIT balance, overhead is OVERAPPLIED, meaning that the overhead assigned to work in process or to the certain job is GREATER than the overhead incurred.
Fixed overhead variance means actual fixed overhead cost was more than it was actually budgeted before start of operations.
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Fixed overhead budgeted variance is the difference between estimated budgeted cost and actual fixed overhead cost of production.
actual foh is the overhead expenses actually incurred on production while applied foh is budgeted overhead expenses for budgeted production.
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Favourable fixed overhead variance occurs when actual fixed cost is less than the budgeted fixed overhead expenses.
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The Actual overhead is calculated throughout the Production cycle for indirect cost associated to the production and the overhead costs applied is based on the fixed rate assigned against the machine or labour hours to be calculated for the difference b/w two are called under or over applied.