ard machine-hours (MHs). The company has provided the following data for the most recent month:
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.
Teall Corporation has a
| Budgeted level of activity | 10,100 | MHs |
|---|---|---|
| Actual level of activity | 10,200 | MHs |
| Standard variable manufacturing overhead rate | $ 7.30 | per MH |
| Budgeted fixed |
$ 66,000 | |
| Actual total variable manufacturing overhead | $ 67,600 | |
| Actual total fixed manufacturing overhead | $ 71,600 |
What was the fixed manufacturing overhead
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