Enviro Corporation manufactures a special liquid cleaner at its Green Plant. Operating data for June follow: Material $714,000 Labor 61,200 Manufacturing Overhead 244,800 The green plant produced 850,000 gallons in June. The plant never has any beginning or ending inventories. Compute the cost per gallon of liquid cleaner produced in June.
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.
Enviro Corporation manufactures a special liquid cleaner at its Green Plant. Operating data for June follow:
Material $714,000
Labor 61,200
Manufacturing
The green plant produced 850,000 gallons in June. The plant never has any beginning or ending inventories.
Compute the cost per gallon of liquid cleaner produced in June.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
