A manufactured product has the following information for June. Standard Quantity and Cost 5 pounds @ $7 per pound 2 DLH @ $17 per DLH 2 DLH @ $12 per DLH Direct materials Direct labor Overhead Units manufactured Actual Results 42,100 pounds @ $7.10 per 16,400 hours @ $17.50 per $ 206, 200 8,300 units cise 23-9 (Algo) Direct materials variances LO P3 bute the (1) direct materials price variance and (2) direct materials quantity variance. Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Ro nal places.

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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.