Data table Standard Cost Information Actual Cost Information Direct Materials Direct Labor Quantity Variable Manufacturing Overhead Fixed Manufacturing Overhead Direct Materials Direct Labor Variable Manufacturing Overhead 0.02 hours 12 per hour Fixed Manufacturing Overhead ($32,640 for static budget volume of 96,000 units and 1,920 hours, or $17 per hour) 2 parts 0.02 hours Cost $0.16 per part 17.00 per hour (207,000 parts @ $0.21 per part) (1,620 hours @ $17.15 per hour) $43,470 27,783 14,000 30,000
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.
Requirements
1. Compute the cost and efficiency variances for direct materials and direct labor.
2. For manufacturing
3. Soundset's management used better quality materials during September. Discuss the trade-off between the two direct material variances.
Please don't give answer & formulae in image based format.. thanku
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