Oseo Company had the following results in June. Planned Actual Sales P160,000 P162,500 Variable costs at P5 per unit 100,000 102,500 Contribution margin 60,000 60,000 Planned sales were 20,000 units, actual sales were 20,500 units. Compute for Revenue Variance- Favorable/(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.
Oseo Company had the following results in June.
Planned Actual
Sales P160,000 P162,500
Variable costs at P5 per unit 100,000 102,500
Contribution margin 60,000 60,000
Planned sales were 20,000 units, actual sales were 20,500 units. Compute for Revenue Variance- Favorable/(Unfavorable)
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