in an assembly-line process. Labor costs incurred during a recent period were: corporate executives, $555,000; assembly-line workers, $187,000; security guards, $55,000; and plant supervisor, $137,000. What is the total of Guaranteed’s direct labor c
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.
Guaranteed Appliance Co. produces washers and dryers in an assembly-line process. Labor costs incurred during a recent period were: corporate executives, $555,000; assembly-line workers, $187,000; security guards, $55,000; and plant supervisor, $137,000. What is the total of Guaranteed’s direct labor cost?
Direct labour cost is the wages paid to the workers who are directly involved in the making of the product.
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