Hockey Accessories Corporation manufactured 21,900 duffle bags during March. The following fixed overhead data pertain to March: Actual Static Budget 21,900 units 22,500 units 1,050 hours 2,250 hours $81,500 $90,000 Production Machine-hours Fixed overhead costs for March What is the flexible-budget amount? A $87,600 B. $81,500 OC. $90,000 OD. $92,466 RIEB

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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.