i)Calculate the standard quantity of materials needed to make 21,000 monitors ii)Calculate the standard quantity of labour-hours needed to make 21,000 monitors iii)Calculate the Direct Materials Price Variance iv)Calculate the Direct Materials Quantity Variance v)Calculate the Direct Labour Efficiency Variance b)Calculate the Variable Overhead Spending Variance
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.
A)
i)Calculate the standard quantity of materials needed to make 21,000 monitors
ii)Calculate the standard quantity of labour-hours needed to make 21,000 monitors
iii)Calculate the Direct Materials Price Variance
iv)Calculate the Direct Materials Quantity Variance
v)Calculate the Direct Labour Efficiency Variance
b)Calculate the Variable
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