duct cs cs Number of Direct Labor Hours Per Unit Units 1,101 2,269 Machine Hours Per Unit 8 5 f the machine hours take place in the Fabrication department, which has an estimated overhead f $80,200. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $1
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.
For any firm, the production process is critical. It is the foundation of any firm. Any firm will incur a variety of indirect costs in order to keep the production process running smoothly. These hidden expenditures are known as industrial overhead or factory overhead. It does not include direct labour and material expenditures.
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