Justine Company budgeted total variable overhead costs at P180,000 for the current period. In addition, they budgeted costs for factory rent at P215,000, costs for depreciation of office equipment at P12,000 coșts for office rent at P92,000, and costs for denreciation of factory equinment at P 38.000, All these costs were based upon

Q: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

Q: Hiring of less qualified workers B.An excess of material usage C.Material price increase D.Utilities…

A: Concept introduction: Direct labor Rate variance: this variance shows the difference of standard…

Q: At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material -…

A: 1. Raw Material Variance= Standard Quantity for Actual Output*Standard rate-Actual Quantity*Actual…

Q: Can you please explain what we mean by "Short-run" and "long-run" for decision-making in cost…

A: The executive management team of a corporation uses cost accounting to determine all variable and…

Q: Fixed overhead volume variance is a flexible budget variance. O True False

A: Fixed overheads are those indirect costs which will not change with change in activity level. These…

Q: Data Year 2 Quarter Year 3 Quarter 1 2 3 4. 1 Budgeted unit sales 40,000 60,000 100,000 50,000…

A: Income Statement is a part of financial statement showing the amount of net profit earned by a…

Q: What effect does an increase in volume have on—c. Total fixed costs?

A:

Q: Overhead costs produced increases. as the number of units Select one: a. increase steadily b.…

A: The question asks how overhead costs change as the number of units produced increases.Generally…

Q: Change in direct materials cost per equivalent unit

A: The cost per equivalent unit for the material is based on the equivalent units for material and the…

Q: How do you get total of period cost?

A: Period Costs are not directly associated with the finished products manufactured, rather associated…

Q: VARIABLE COST PER UNIT What is the formula or method for finding the variablel cost per unit?

A: Variable cost is varies with number of units produced. Variable cost per unit is constant and total…

Q: Why is variable cost $174?

A: Variable costs are the costs which are directly related to the production of a unit. If there is no…

Q: iable costs change in direct proportion to a change in the activity level. True or False?

A: There are two types of one is fixed cost and other is variable cost and both are part of the total…

Q: Variable Costing, Absorption Costing During its first year of operations, Snobegon, Inc. (located in…

A: Under Variable Costing, Contribution margin = Sales - Variable cost Operating Income = Contribution…

Q: Define the term Annual operating cost:?

A: MEANING OF OPERATING COST The sum total of operating expenses and cost of goods sold is called…

Q: Why would staff costs increase with increase in revenue?

A: We have to explain why staff costs would increase with increase in revenue.

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.