
Appendix D (Chapter 6) ◾ 325
(WIP2) B. Overhead = Actual labor×overhead rate
Actual overhead expense –
(WIP3) C. Materials (purchased, outside processing, etc.)
Actual cost –
Stockroom raw materials, assemblies at Standard (material, labor, and overhead)
COS1
SR1
SR2
(SR1) A. Standard labor cost on completed work order
Labor performance variance
Actual –
last-level labor cost on work order
(SR2) B. Overhead = Standard labor×overhead rate
Overhead performance variance
Labor performance variance ×
COS1