b. Manufacturing costs: Direct labor Direct materials Factory overhead Total Manufacturing costs: Direct labor Direct materials Factory overhead Total GENIE IN A BOTTLE COMPANY Manufacturing Cost Budget For the Month Ended July 31 Batches of 100 Actual Costs Cost per Batch of 100 GENIE IN A BOTTLE COMPANY Manufacturing Costs Budget Performance Report For the Month Ended July 31 Batches of 100 Standard Cost at Planned Volume (400,000 bottles) Standard Cost at Actual Volume (406,000 bottles) Cost per x Batch of 100 Cost Variance (Favorable) Unfavorable
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.
EX23 3
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