Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Multiple Choice $35,550 Variable administrative expense Fixed selling and administrative expense $ 5,900 9,000 units are produced, the total amount of manufacturing overhead cost is closest to: $36,550 Cost per Unit Period $ 7.55 $ 3.30 $1.95 $34.550 $ 1.00 $0.80 $ 19,000
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.
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