Finch Manufacturing Company established the following standard price and cost data: Sales price $ 8.00 per unit Variable manufacturing cost $ 3.90 per unit Fixed manufacturing cost $ 2,900 total $ 700 total Fixed selling and administrative cost Finch planned to produce and sell 2,500 units. Actual production and sales amounted to 2,600 units. Required Determine the sales and variable cost volume variances.

Q: Explain who is in the best position in the organization to influence each of these variances.   a.…

A: Variance is a term used for measurement of variability. It computes the difference between the…

Q: Define sales volume variance.

A: Sales volume variance (also known as sales quantity variance) occurs when the actual quantity of…

Q: Explain why a favorable sales-quantity variance occurs.

A: Explain the reason for the occurrence of favorable sales quantity variance:When actual sales exceed…

Q: rd allocation base C. actual and standard overhead rates D. actual units and actual overhead rates

A: Given: To explain the correct option with the given as,

Q: The total manufacturing overhead variance is composed of flexible budget variance and production…

A: Manufacturing overheads means all type of indirect costs and expenses being incurred in business.…

Q: Explain the term flexible budget variance.

A: Flexible Budget: It is a type of budget that changes based on the volume of business activity.…

Q: Of the following pairs of variances found in a flexible budget report, which pair is most likely to…

A: Variance in simple terms means difference or change. In costing variance refers to the difference…

Q: please solve for these questions:  b-1. What is the labor efficiency variance? b-2. What is the…

A: Variance analysis is a method of measuring the difference between the standard numbers expected by…

Q: Cite a specific example of the application of gross profit variance analysis. How will it help the…

A: Variance analysis for any variable enables the entity to break down the variable and establish…

Q: The amount of the activity variance for revenue What is the spending variance for the cost of…

A: Lets understand the basics.Activity variance for revenue is a variance between the planned revenue…

Q: When is the direct labor time variance favorable? A. when the actual quantity used is greater than…

A: Direct labor time is the time taken o produce a unit . when the standard time to make a unit is less…

Q: Give an example of a Direct Material Price Variance with figures and calculate the variance

A: Direct Material Price Variance is the difference between actual material cost and standard cost of…

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.