Delaware Corp. prepared a master budget that included $24,360 for direct materials, $28,100 for direct labor, $18,270 for variable overhead, and $38,900 for fixed overhead. Delaware Corp. planned to sell 4,060 units during the period, but actually sold 4,310 units. What would Delaware’s variable overhead cost be if it used a flexible budget for the period based on actual sales? (Do not round your intermediate calculations.) Multiple Choice $18,270 $19,395 $17,224 $38,900
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.
Delaware Corp. prepared a
Multiple Choice
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$18,270
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$19,395
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$17,224
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$38,900
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