Jaguar Corporation has the following estimated costs for the next year Direct materials $25,000 Direct labor. $22,000 $15,000 $13,500 Advertising expense. Rent on factory building Depreciation on factory equipment... Indirect materials. Sales salaries. Insurance on factory equipment. $6,500 $10,000 $28,000 $12,000 Jaguar estimated that 20.000 direct labor-hours and 10,000 machine-hours would be worked during the year. Based on the predetermined overhead rate per machine-hour, how much will be applied to the job, assuming that the actual overhead, actual labor-hours, actual machine- hours for the year turned out to be $30.000, 13.000 labor-hours, and 15,000 machine-hours respectively. Please type the amount only. Do not use dollar signs or commas.

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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. 

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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.