Alleyway Corporation manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow: Production Strike 2,300 bags Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows: Turkey 3,500 bags Cutting 0.150 hour per bag Strike Turkey 0.200 hour per bag Hourly direct labor rates are $11 for the Cutting Department and $16 for Sewing. Required: Determine Alleyway's budgeted direct labor cost for October. Note: Round your final answers to nearest whole dollar. Do not round your intermediate calculations. Budgeted Direct Labor Cost $ Sewing 0.350 hour per bag 0.350 hour per bag Cutting $ Sewing

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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.