Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($520,000.00 + 200,000.00 units) arley Hopp had the following actual results last year: Number of units produced and sold Number of pounds of clay purchased and used Cost of clay Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Standard Quantity 1.90 pounds 1.90 hours $2.00 per pound $ 15.00 per hour Standard Price (Rate) Cost $ 3.80 28.50 1.90 hours $ 1.20 per hour 2.28 2.60 205,000 378,200 $ 794,220 250,000 $ 5,875,000 $ 450,000 $ 510,000
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.
please answer this with must explanation , computation for each parts and steps answer in text form
Trending now
This is a popular solution!
Step by step
Solved in 5 steps