amount would appear in the July selling, general, & administrative expense budget
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.
Paradise Company manufactures toy airplanes. Information on Paradise Company's labor costs follow:
Sales Commission $5 per plane
administration $10,000 per month
indirect factory labor $3 per plane
direct factory labor $5 per plane
budgeted production for July 1200 units
budgeted sales for July 1000 units
What amount would appear in the July selling, general, & administrative expense budget?
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