ing is the data of a manulacuring con the figures given below, calculate: ) Materials Cost Variance (W) Material Price Variance (W) Material Usage Variance Product X During a particular period 140 fons of output w undertaken. The standard price per unit of ma $20. The materials required for actual producti 4,000 units. An amount of $16.000 was spent on purchasing the materials. The standard quanti materlals required for producing one fon of out units.
ing is the data of a manulacuring con the figures given below, calculate: ) Materials Cost Variance (W) Material Price Variance (W) Material Usage Variance Product X During a particular period 140 fons of output w undertaken. The standard price per unit of ma $20. The materials required for actual producti 4,000 units. An amount of $16.000 was spent on purchasing the materials. The standard quanti materlals required for producing one fon of out units.
Chapter1: Financial Statements And Business Decisions
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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.
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![Schematize pertormance analysis and comment on
variances.
Following is the data of a manufacturing concern. From
the figures given below, calculate:
() Materials Cost Variance
(W) Material Price Varlance
(H) Material Usage Variance
Product X
During a particular period 160 tons of output was
undertaken. The standard price per unit of materials is
$20. The materials required for actual production were
4,000 units. An amount of $16,000 was spent on
purchasing the materlals. The standard quantity of
materials requlred for producing one fon of output is 120
units.
Product Y
The standard quantity of materlals required for producing
one ton of output is 240 unils. The standard price per unit
of materials is $24. During a porticular period d40 fons of
production were 24.000 units. An amount of $48.000 was
spent on purchasing the materials
output was undertaken. The materials required for octual](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe1b142a0-c6d0-4a03-85d2-fb32edeea756%2F7e629dca-fe54-42b5-8c9f-213eb7c008d8%2F06q89km_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Schematize pertormance analysis and comment on
variances.
Following is the data of a manufacturing concern. From
the figures given below, calculate:
() Materials Cost Variance
(W) Material Price Varlance
(H) Material Usage Variance
Product X
During a particular period 160 tons of output was
undertaken. The standard price per unit of materials is
$20. The materials required for actual production were
4,000 units. An amount of $16,000 was spent on
purchasing the materlals. The standard quantity of
materials requlred for producing one fon of output is 120
units.
Product Y
The standard quantity of materlals required for producing
one ton of output is 240 unils. The standard price per unit
of materials is $24. During a porticular period d40 fons of
production were 24.000 units. An amount of $48.000 was
spent on purchasing the materials
output was undertaken. The materials required for octual
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