MARISSA Co., the consultant of MARISOL Co. Had summaized the following standard cost data extracted fom the histoncal records and performance reports issued by the cost a0counting department in the prior year amalysis and evaluation of the standard costing policy of the Input required per Standard cost per Standard cost per Direct Materiala Direct Labor 6 kg per unit 1um d అnng g Other information follows: Budgeted factory overhead for the year. Variable 000000 The company's nomal capacity per month in 400 units Actual cost materials purchased for the year is P 2,342,000 During the year direct materials purchased is 26,880 kg while direct materials actually used Actual labor costs for the year 1,080,000 ofwhich 24,900 direct labor hours was consumed Actual factory ovarhead amounted to 1,320,00, 65% of which is fixed cost, FOH is based on labor hours Actual production during the year 5,150 units
MARISSA Co., the consultant of MARISOL Co. Had summaized the following standard cost data extracted fom the histoncal records and performance reports issued by the cost a0counting department in the prior year amalysis and evaluation of the standard costing policy of the Input required per Standard cost per Standard cost per Direct Materiala Direct Labor 6 kg per unit 1um d అnng g Other information follows: Budgeted factory overhead for the year. Variable 000000 The company's nomal capacity per month in 400 units Actual cost materials purchased for the year is P 2,342,000 During the year direct materials purchased is 26,880 kg while direct materials actually used Actual labor costs for the year 1,080,000 ofwhich 24,900 direct labor hours was consumed Actual factory ovarhead amounted to 1,320,00, 65% of which is fixed cost, FOH is based on labor hours Actual production during the year 5,150 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Topic Video
Question
1. Compute for Spending Variance
2. Compute for Variable Overhead Efficiency Variance
3. Compute for Controllable Variance
Transcribed Image Text:MARISSA Co., the consultant of MARISOL Co. Had summaized the following standard cost
data extracted fom the histoncal records and performance reports issued by the cost a0counting
department in the prior year amalysis and evaluation of the standard costing policy of the
Input required per
Standard cost per
Standard cost per
Direct Materiala
Direct Labor
6 kg per unit
1um d అnng g
Other information follows:
Budgeted factory overhead for the year.
Variable
000000
The company's nomal capacity per month in 400 units
Actual cost materials purchased for the year is P 2,342,000
During the year direct materials purchased is 26,880 kg while direct materials actually used
Actual labor costs for the year 1,080,000 ofwhich 24,900 direct labor hours was consumed
Actual factory ovarhead amounted to 1,320,00, 65% of which is fixed cost, FOH is based
on labor hours
Actual production during the year 5,150 units
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