EFT Debits are processed in the evening. Intecon provides access to a service that gives the business or organisation the ability to verify the bank account details prior to loading the payment instruction.
Whereas the cost variances for direct materials, direct labor, and variable overhead all use the same two formulas, the cost variances for fixed overhead are different, and do not use these formulas at all.
To help you keep uneven allocations straight, remember that overhead allocation entails three steps: 1  Add up total overhead. 2  Compute the overhead allocation rate by dividing total overhead by the number of direct labor hours. 3  Apply overhead by multiplying the overhead allocation rate by the number of direct labor hours needed to make each product. Because Product J requires 120 hours, apply $300 worth of overhead ($120 hours x $2.50) to this product. Product K requires 40 hours, so apply $100 to that product.