Bonita Company uses standards and budgets. For the year, estimated production of product X is 447,000 units. The total estimated costs for materials and labour are $1,117,000 and $1,430,000, respectively. Calculate the estimates for (a) a standard cost and (b) a budgeted cost. (Round per unit answers to 2 decimal places, e.g. 15.25 and other answers to O decimal places, e.g. 125.) Materials Labour (a) Standard cost $ per unit $ (b) Budgeted cost $ $ per unit
Bonita Company uses standards and budgets. For the year, estimated production of product X is 447,000 units. The total estimated costs for materials and labour are $1,117,000 and $1,430,000, respectively. Calculate the estimates for (a) a standard cost and (b) a budgeted cost. (Round per unit answers to 2 decimal places, e.g. 15.25 and other answers to O decimal places, e.g. 125.) Materials Labour (a) Standard cost $ per unit $ (b) Budgeted cost $ $ per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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Transcribed Image Text:Bonita Company uses standards and budgets. For the year, estimated production of product X is 447,000 units. The total estimated
costs for materials and labour are $1,117,000 and $1,430,000, respectively. Calculate the estimates for (a) a standard cost and (b) a
budgeted cost. (Round per unit answers to 2 decimal places, e.g. 15.25 and other answers to O decimal places, e.g. 125.)
(a) Standard cost
$
(b) Budgeted cost
$
Materials
Labour
per unit
$
$
per unit
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