Pale Manufacturing Company has an expected production level of 175,000 product units in 2020. Fixed factory overhead is P450,000 and the company applies factory overhead on the basis of expected production level at the rate of P5.20 per unit. The variable overhead cost per unit is * Ph 2.57 Ph 2.63 Ph 2.93 Ph 3.02
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.
Pale Manufacturing Company has an expected production level of 175,000 product units in 2020. Fixed factory
Ph 2.57
Ph 2.63
Ph 2.93
Ph 3.02
Step by step
Solved in 2 steps
