Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for a representative quarter for the two models follow: Units produced Standard 13,600 Premium 3,400 Production runs per quarter 50 Direct materials cost per unit $ 30 50 25 $ 64 75 Direct labor cost per unit Manufacturing overhead in the plant has three main functions: supervision, setup labor, and incoming material inspection. Data on manufacturing overhead for a representative quarter follow: Supervision Setup labor Incoming inspection Total overhead $ 280,500 284,325 234,600 $ 799,425 Exercise 9-34 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4) Required: a. Benton currently applies overhead on the basis of direct labor cost. What is the predetermined overhead rate for the quarter?

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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. 

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