Jasper Company makes a single product. Its standard costs per unit are as follows: Direct materials, 2 pounds @$4.50 Direct labour, 3 hours @$5 Overhead $10 per direct labour-hour (DLH)* Standard cost per $9 15 30 $54 unit *Based on normal capacity of 50,000 units. $7 per DLH is variable. At the beginning of 2019, there were no inventories. During 2019, the following events осcurred: 1. Direct labour was $790,750 for 151,000 DLH worked. 2. Variable overhead incurred was $1,046,000. 3. Fixed overhead was $490,000. 4. Jasper produced 48,000 units. There were no unfinished goods or work in process (WIP) at the end of 20X6.
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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__________
A. What was the total
B. What was the fixed overhead volume variance for 2019?
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