Direct material cost $3 per unit; direct labor cost $5 per unit and overhead is applied at the rate of 100% of the direct labor cost. That is the inventory transferred to next department if the beginning inventory was 2000 unit and 9000 unit we're started and 1000 unit at the end of inventory
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.
Direct material cost $3 per unit; direct labor cost $5 per unit and
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