Myers Corporation has the following data related to direct materials costs for November: actual costs for 4,660 pounds of material at $5.40 and standard costs for 4,480 pounds of material at $6.10 per pound. The direct materials quantity variance is Oa. $1,098 favorable Ob. $3,262 unfavorable Oc. $3,262 favorable Od. $1,098 unfavorable
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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