Exemplar company reported the following information for its first year of operations. Units produced Units sold 1,500 Direct Materials Php 9.00/u Php 5.00/u Variable overhead Php 7.00/u Direct Labor Fixed overhead Php 24,000 If the company's cost per unit of finished goods using absorption costing is P27, how many units were produced?
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.
If the company's cost per of finished goods using absorption costing is 27, how many units were produced?
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