MetaPro Systems is a start-up company that makes connectors for high-speed Internet connections. MetaPro has budgeted three hours of direct labor per connector, at a standard cost of $13 per hour. During August, technicians actually worked 205 hours completing 74 connectors. All 74 connectors actually produced were sold. MetaPro paid the technicians $13.80 per hour. What is MetaPro's direct labor efficiency variance for August? OA. $2,829.00 F B. $221.00 F OC. $234.60 F O D. $57.00 F
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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