Oriole Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Oriole Company's purchases of EZslide snowboards during September. During the same month, 103 EZslide snowboards were sold. Date Sept. 1 Sept. 12 Sept. 19 Sept. 26 Explanation Units Unit Cost Inventory $102 Purchases 105 Purchases 106 Purchases 107 Totals 14 45 49 25 133 Total Cost $1,428 4,725 5,194 2,675 $14,022

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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.