Board Company's direct labor information for February is as follows: Direct labor hours worked (AQ) Standard direct labor hours for units manufactured (SQ) Unfavorable direct labor rate variance Total payroll for direct labor The total direct labor flexible-budget variance in February was: 34,800 36,500 $ 17,400 $ 452,400

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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.